Korea Exchange Considers Riskier ETFs to Woo Retail Traders

South Korea’s main bourse is in talks with financial authorities to ease rules that ban high-risk leveraged exchange-traded products, as a record rally in local shares has failed to draw retail investors back to the domestic market.

The Korea Exchange is reviewing ways to gradually relax restrictions that prohibit risky products such as single-stock leveraged ETFs and funds providing three times or more exposure to an index, according to its chief executive.