Frenzy Over Overseas Leveraged ETFs Sparks New Rules for Koreans

South Korean retail investors’ voracious appetite for leveraged exchange-traded funds listed overseas has prompted the nation’s regulators to tighten rules for buyers of these high-risk products.

Come Dec. 15, local investors will have to complete an hour-long mandatory online training before investing in leveraged or inverse exchange-traded products listed in foreign markets, the Financial Supervisory Service said in a statement on Sunday. Those seeking to buy derivatives products abroad will have to go through a mock-trading program lasting at least three hours, in addition to the online course.