Finance
South Korea considers 3x leverage ETFs to lure retail investors back
South Korea is reviewing measures to reverse the shift of retail investors into U.S. leveraged ETFs, including lifting the leverage limit for domestic ETFs from 2x to 3x and permitting single-stock leveraged products. Industry officials say holdings of U.S. stock leveraged ETFs by Korean individuals reached $15.6 billion as of November 2025. Authorities expect the steps could ease upward pressure on the won-dollar exchange rate, though critics warn of higher investor risk.