South Korean financial regulators are considering limiting leveraged investments in individual stocks, with a potential cap of 20% on individual investment proportions.

South Korean financial regulators have decided to introduce additional supervisory measures, such as an individual investment limit, if the overheating of leveraged products for single stocks fails to subside. They are currently focusing on a plan to limit the leveraged investment amount for individual stocks to within 20% of the total investment amount in all financial investment products.

A reporter noted that according to previously disclosed official statistics from South Korea, as of July 13, the cumulative liquidation scale in July reached 344.2 billion Korean Won (approximately 1.57 billion RMB). Over 1.2 million leveraged retail accounts have triggered margin calls, of which approximately 320,000 to 360,000 accounts have been fully liquidated by brokerages, with some accounts even owing money to the brokerages. (Cailianshe)