South Korean Financial Regulators Consider Limiting Leveraged Stock Investments, Individual Investment Share May Be Capped at 20%

Odaily Odaily reported that South Korea's financial regulatory authorities have decided to introduce additional regulatory measures, such as a cap on individual investment, if the overheating of leveraged single-stock products does not subside. They are currently focusing on a plan to limit individual leveraged stock investments to within 20% of all financial investment product investments.

According to the reporter, official statistics previously released by South Korean authorities show that as of July 13, the cumulative forced liquidation scale for July reached 344.2 billion won (approximately 1.57 billion yuan), with over 1.2 million leveraged retail accounts hitting margin call lines. Among these, approximately 320,000 to 360,000 accounts have been fully liquidated by securities firms, with some accounts even incurring debts owed to the brokerages. (Cailianshe)