South Korea's Financial Regulator Considers Limiting Leverage Investment in Individual Stocks, Personal Investment Ratio May Be Capped at 20%

Odaily Planet Daily News South Korea's financial regulatory authorities have decided to introduce additional regulatory measures, such as a personal investment cap, if the overheated investment in single-stock leveraged products does not subside. Currently, they are focusing on a plan to limit individual stock leverage investment to within 20% of total financial investment product investments.

The reporter noted that according to previously disclosed statistics from South Korean officials, as of July 13, the cumulative forced liquidation scale in July reached 344.2 billion Korean won (approximately 1.57 billion RMB). Over 1.2 million leveraged retail accounts hit the margin call line, of which approximately 320,000 to 360,000 accounts have been fully forcibly liquidated by securities firms, with some accounts even falling into debt to the brokerage. (Cailianshe)