In Hwaseong, about an hour south of Seoul, Park Eun-hye has been staying up well past midnight to load up on risky bets on South Korean stocks. The 39-year-old trader represents a growing trend of retail investors turning to leveraged exchange-traded funds as Korean markets experience heightened volatility. These products, which amplify returns through borrowed money, have become increasingly popular among individual traders seeking to profit from rapid market swings.

Park's late-night trading sessions highlight the psychological toll these high-risk investments can take. Leveraged ETFs, which can deliver two or three times the daily return of their underlying index, have drawn criticism from financial regulators for their complexity and potential to magnify losses. The products are particularly attractive in falling markets, where some traders believe they can profit from both upward and downward movements.

This surge in leveraged ETF trading comes as South Korea's stock market faces significant pressure from global economic uncertainties and domestic challenges. The phenomenon reflects a broader pattern of retail investors seeking high-risk, high-reward opportunities in turbulent markets, often with little understanding of the complex mechanics behind these financial instruments.