South Korean retail investors are retreating from leveraged exchange-traded funds linked to Samsung Electronics and SK Hynix after regulators tightened access requirements. Trading value in ETFs designed to deliver twice the daily returns of the chipmakers has dropped to 4% of its June peak, while the products have recorded about $1 billion in combined outflows so far in August, putting them on track for their first monthly outflow. Since Aug. 19, investors have been required to complete five days of simulated trading, using a Windows-only program for at least one hour daily with virtual funds before they can buy the ETFs. The measure follows an earlier increase in the minimum deposit, as authorities sought to curb speculative activity that had intensified swings in South Korea’s stock market. Introduced in May to encourage more retail investment in domestic equities, the leveraged ETFs and their underlying Samsung Electronics and SK Hynix shares at one point represented more than 80% of total market turnover. Assets in the ETFs declined to about $5 billion as of Aug. 27 from $11.4 billion in late June. Global technology selloffs and investor concerns over AI spending and monetization have also reduced demand. Bloomberg Intelligence analyst Rebecca Sin said outflows could persist in the near term as restrictions tighten. The pullback has coincided with lower volatility: the Kospi volatility gauge fell to a four-month low near 50 from 97 in late June. South Korea’s benchmark index is still up 61% this year, but remains about 25% below the record reached two months ago.