South Korea Plans to Limit Individual Stock Margin Trading to 20%, Will Prioritize Monitoring Policy Effectiveness from July 31

July 28th - According to South Korea's Chosun Ilbo, the South Korean financial regulatory authority today decided that if the investment frenzy in single stock leveraged products does not subside, additional regulatory measures such as individual investment limits will be introduced. Currently, the authority is actively studying a plan to limit the stock leveraged investment amount to within 20% of the total financial investment product amount.

Today, at a symposium, Lee Eun-yeol, the Chairman of the Financial Services Commission of South Korea, stated that they will prioritize closely monitoring the policy effectiveness of the enhanced basic reserve requirements and other supplementary measures effective from July 31st. Lee Eun-yeol also mentioned that if the demand does not diminish significantly, they will proactively study and prepare additional measures. It is reported that the current plan under consideration is to establish a total quantity management rule, limiting the proportion of individual stock leverage within the total amount of personal financial investment products to 20%. For example, if the financial investment product amount is 100 million Korean won, a maximum of only 20 million Korean won can be invested in a single stock leveraged product.