South Korea's top financial regulator is set to announce new measures for single-stock leveraged exchange-traded funds (ETFs) as authorities step up efforts to curb excessive market volatility and strengthen investor protection, Reuters reported.Financial Services Commission (FSC) Chairman Lee Eog-weon said the regulator is closely reviewing the products and will soon introduce improvement measures for the fast-growing segment. The review comes amid concerns that leveraged ETFs linked to individual stocks have contributed to sharp price swings in the domestic equity market.Single-stock leveraged ETFs are designed to amplify the daily returns of an underlying stock, making them significantly more volatile than conventional ETFs. Regulators view these products as suitable only for investors with a high risk appetite and a clear understanding of their potential losses.The FSC has been monitoring the impact of these products on market stability while continuing to educate investors about the risks associated with leveraged investment strategies. The regulator believes investor awareness remains important for mitigating potential market disruptions.Despite concerns over volatility, South Korea is not considering a temporary suspension of trading in single-stock leveraged ETFs. The regulator believes such a move could create unintended consequences and cause greater disruption to financial markets than the products themselves.The planned measures are expected to focus on improving the regulatory framework and ensuring orderly market functioning rather than restricting investor access to the products. The announcement is likely to form part of broader efforts to reinforce confidence in South Korea's capital markets.Alongside the ETF review, South Korean authorities are pursuing wider reforms aimed at attracting long-term investment into the country's equity market. These include encouraging listed companies to improve corporate governance standards, enhance shareholder returns through higher dividend payouts, and strengthen overall market transparency.The government is also continuing its efforts to secure South Korea's inclusion in the MSCI developed-market index, a move that could boost foreign investment inflows and further deepen the country's capital markets, according to Reuters.