Seoul: Single-stock leveraged, or inverse, exchange-traded funds (ETFs) are expected to be introduced on the local stock market in late May, the country's financial regulator said Tuesday. These financial instruments are designed to provide up to twice the daily performance of an underlying stock, as confirmed by the Financial Services Commission (FSC).

According to Yonhap News Agency, the regulator has announced that related procedures, including revisions to the enforcement of the Capital Market Act, have been completed, paving the way for the launch of these ETFs. However, not all stocks will be eligible to become underlying assets for these financial products.

The FSC outlined specific criteria for a listed firm to qualify as an underlying asset for leveraged ETFs. The firm's average market capitalization must exceed 10 percent of the market's total value, and its average turnover should surpass 5 percent of the market in total. These stringent requirements aim to ensure the stability and viability of the leveraged ETFs once they are introduced to the market.