South Korea is set to introduce leveraged ETFs that track the performance of a single stock.

Following regulatory changes, investors will soon be able to trade products that aim to deliver up to double the returns of selected blue-chip stocks.

Currently, Samsung Electronics and SK hynix are expected to be the primary underlying assets. Trading could begin as early as late May after regulatory approvals.

Until now, single-stock ETFs were restricted in Korea due to diversification rules, while such products have already gained traction in overseas markets.

Authorities emphasized that these instruments carry higher risks. Investors will be required to complete additional education and meet deposit requirements before trading.

Experts warn that leveraged ETFs are more suitable for short-term strategies due to their high volatility and compounding risks.

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