Korean Financial Supervisory Service will monitor broker margin trading and securities lending/borrowing to prevent the expansion of retail investor losses

Odaily Planet Daily News The Korean Financial Supervisory Service (FSS) has requested financial institutions to strengthen market stability and forward-looking risk management. In terms of the stock market, the FSS announced it will track broker margin trading and securities lending/borrowing to prevent market volatility from leading to greater losses for individual investors. Simultaneously, targeting potential solvency pressures that some financial insurance companies may face, regulatory authorities plan to push them to reduce the risk of asset-liability duration mismatches.

FSS Governor Lee Bok-hyun stated that against the backdrop of increased volatility in the Korean stock market, continued tensions in the Middle East, and rising expectations for further interest rate hikes by the US, future market volatility may expand further. Relevant institutions need to be fully prepared to continuously monitor the operation of the 24-hour foreign exchange market trading mechanism, as well as the financing and operational status of financial institutions. (EToday)