South Korea's Financial Services Commission and Financial Supervisory Service are drafting a joint amendment to the Financial Investment Services and Capital Markets Act that would allow financial institutions to temporarily adjust leverage ratios on domestic single-stock leveraged products when investor protection is needed, according to Ming Pao.

Under the proposed emergency action authority, leverage could be lowered to 1.5 times or 1 times. The report said South Korean regulators cited the Hong Kong Securities and Futures Commission's variable leverage ratio model as a reference.