The announcement lands amid yet another sharp sell-off, with sidecars triggered on both the Kospi and Kosdaq on Thursday as the chip-heavy market extended losses tied to overnight weakness in US semiconductor stocks and lingering Middle East risk. Single-stock leveraged ETFs tied to Samsung Electronics and SK hynix have repeatedly been named by regulators and analysts as amplifiers of these swings, given the hedging flows they generate in the underlying stocks. With the FSC ruling out a suspension but confirming curbs are coming, market participants are likely to watch closely for details on deposit requirements, listing restrictions or other measures that could dampen the products' outsized influence on volatility.---Seoul's top regulator is preparing new curbs on single-stock leveraged ETFs just as another sidecar-triggering sell-off hits both the Kospi and Kosdaq.Summary:FSC Chairman Lee Eog-weon said the regulator will soon announce and closely review improvement measures on single-stock leveraged ETFsLee ruled out a temporary trading suspension, saying it could cause a bigger side-effect in markets, while calling the products inherently high-riskRegulators are separately focused on broader market stability steps, including encouraging better corporate governance, higher dividends, and pursuit of Korea's inclusion in an MSCI developed-market indexThe comments come as the Kospi and Kosdaq both triggered sell-side sidecars again on Thursday amid a fresh bout of heavy selling in chip stocksThe scrutiny is not new: single-stock leveraged ETFs tied to Samsung Electronics and SK hynix launched only in late May, and have faced mounting criticism, including from the president, for amplifying market volatility sinceRegulators have previously denied rumours of a strict 20% price-swing cap, saying they remain at the stage of monitoring and considering supplementary measures such as higher deposit requirements and expanded investor educationSouth Korea's top financial regulator said new measures on single-stock leveraged ETFs are on the way, as the products once again came under scrutiny during another volatile session for Korean equities. FSC Chairman Lee Eog-weon said the Financial Services Commission would soon closely inspect and review improvement measures on the ETFs, according to Reuters, describing them as inherently high-risk products whose dangers regulators have already explained to investors. Asked whether a temporary trading suspension was under consideration, Lee said such a step could cause a bigger side-effect in the market.The comments came, indeed helped trigger, as the Kospi and Kosdaq both triggered sell-side sidecars again on Thursday, extending a pattern of heavy volatility that has defined the Korean market for much of the year. Thursday's Kospi sidecar, its 19th of the year, was driven by a sharp overnight selloff in US semiconductor stocks that dragged down index heavyweights Samsung Electronics and SK hynix, compounded by ongoing unease over the Middle East conflict.The scrutiny of single-stock leveraged ETFs is not new. The products, tracking Samsung Electronics and SK hynix at up to double daily exposure, only launched in late May after regulators reversed a longstanding ban, partly in hopes of drawing capital back from similar products listed in Hong Kong. Within weeks, however, officials including President Lee Jae-myung began pushing for supplementary measures, arguing the products' hedging flows were amplifying swings in the underlying stocks and contributing to a historic run of sidecar and circuit-breaker activations this year. The Bank of Korea has separately flagged concerns about capital concentrating further into the two chipmakers as more such products come to market.Regulators have so far stopped short of finalising specific rules, previously dismissing circulating claims of a strict 20% daily price-swing cap as groundless. Officials have said they remain at the stage of monitoring the products' impact and weighing supplementary steps such as higher deposit requirements, expanded investor education, and tighter listing criteria, while resisting calls from some lawmakers to delist the ETFs outright. Beyond the ETF-specific measures, the FSC's broader push for market stability includes encouraging stronger corporate governance and higher dividend payouts among listed firms, part of an effort that also aims to help secure Korea's inclusion in an MSCI developed-market index. This article was written by Eamonn Sheridan at investinglive.com.