South Korea's financial regulators consider limiting leveraged investments in individual stocks, with a potential cap on individual investment proportion at 20%

The South Korean financial regulatory authorities have decided that if the overheating of leveraged investment products in single stocks fails to subside, they will introduce additional regulatory measures such as a cap on individual investment. Currently, they are focusing on a plan to limit leveraged investment in individual stocks to within 20% of the total investment in all financial investment products.

Reporters noted that according to previously disclosed official statistics from South Korea, as of July 13, the cumulative forced liquidation scale in July reached 344.2 billion Korean won (approximately 1.57 billion Chinese yuan), with over 1.2 million retail leveraged accounts hitting margin call thresholds. 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)