South Korea is reviewing rule changes that could allow single stock leveraged exchange traded funds, as policymakers look to draw retail investors back to the domestic market.

Financial authorities said the Financial Services Commission (FSC) has begun examining reforms that would permit leveraged ETFs linked to individual stocks and potentially raise the current leverage cap on index-based ETFs above two times, according to local media reports.  Under current rules, ETFs in Korea cannot track a single stock with leveraged exposure The review was reportedly discussed following a meeting on 13 January between senior government officials and executives from maj