Korean Financial Supervisory Service Warns Again of High Leverage Investment Risk

BlockBeats News, July 7th - Lee Chan-jin, the head of the Financial Supervisory Service of South Korea, reiterated a warning during yesterday's 3rd Consumer Risk Response Agreement meeting that the "leverage investment phenomenon is spreading throughout the entire financial industry and may seriously damage the financial health of households."

Lee Chan-jin emphasized that when household financial assets are overly concentrated in specific assets or when leverage is used beyond their capacity, they not only face a huge risk of loss but also severely undermine the overall financial well-being of the household.

Furthermore, Lee Chan-jin demanded that financial companies must fully explain the structure and risks of leverage investment throughout the entire process of designing, manufacturing, and selling financial products, and strictly manage to avoid sales practices that induce "borrowing to invest."