South Korean financial regulators consider limiting leveraged investments in individual stocks, with individual investment ratio potentially capped at 20%

Odaily news South Korean financial regulatory authorities have decided that if the excessive investment in single stock leveraged products does not cool down, they will introduce additional regulatory measures such as an individual investment cap. They are currently focusing on a plan to limit the amount of leveraged investment in individual stocks to within 20% of the total investment in all financial investment products.

Reporters noted that previously disclosed official statistics from South Korea show that as of July 13, the cumulative forced liquidation scale in July reached 344.2 billion Korean won (approximately 1.57 billion RMB), with over 1.2 million leveraged retail accounts hitting margin call lines. Of these, approximately 320,000 to 360,000 accounts have been fully liquidated by brokerages, with some accounts even showing negative balances owed to the brokers. (Caixin)