South Korea’s Financial Services Commission (South Korea’s financial regulator) and the Korea Exchange (South Korea’s securities exchange) will require first-time retail investors to complete simulated trading and education before trading single-stock leveraged ETFs (funds targeting amplified daily returns) and ETNs (exchange-traded debt instruments) from August 19, 2026. Investors must trade on the KRX platform for at least one hour on each of five separate days, complete three hours of education on leveraged products and negative compounding, and hold at least 30 million won, roughly $21,000, in cash before placing a real order. The measures follow a 76% Kospi gain in 2025, driven by semiconductor demand, AI optimism and strong retail participation. The Kospi rose above 9,300 points by June 2026, shortly after single-stock leveraged ETFs launched on May 27. Daily trading volume exceeded 10 trillion won, while assets under management peaked at 17.6 trillion won. Investors were drawn to amplified exposure to stocks including Samsung Electronics and SK Hynix, but some reportedly lost about half their investments when the Kospi retreated from its June highs. Trading volumes collapsed by late July after July 31, and net redemptions reached 1.4 trillion won from August 4 to August 10. Regulators chose education and financial hurdles rather than an outright prohibition, targeting misunderstandings about daily rebalancing and the way volatility can erode returns even when an underlying stock ends unchanged.