South Korea plans to tighten restrictions on single-stock leveraged ETFs as regulators seek to curb speculative retail trading and reduce market volatility. The latest measures, including a proposed investment cap, come after trading activity in the high-risk products showed signs of cooling following earlier regulatory steps.

Regulators are eyeing curbs such as reducing the leverage ratio of single-stock ETFs and raising the minimum investment requirement.

South Korea's leveraged ETFs tied to Samsung and SK Hynix saw trading volumes collapse after regulators tripled minimum deposits and froze new