South Korea Plans to Limit Single Stock Margin Trading to 20%, to Focus on Monitoring Policy Impact from July 31

BlockBeats News, July 28th. Today, the South Korean financial regulatory authorities decided that if the investment heat in a single stock leveraged product fails to subside, additional regulatory measures, such as individual investment limits, will be introduced. Currently, the focus is on studying a proposal to limit the individual stock leveraged investment amount to within 20% of the total financial investment product amount.

Today, Chairman Lee Eun-yeol of the South Korean Financial Services Commission stated at a meeting that they will prioritize closely monitoring the policy effects of the strengthened basic reserve fund and other supplementary measures that will be implemented starting on July 31st. Lee Eun-yeol also mentioned that if the demand does not sufficiently subside, they will also proactively study and prepare additional measures. It is reported that the currently studied proposal involves setting a total quantity management rule to restrict the proportion of individual stock leverage within 20% of the total amount of individual financial investment products. For example, if the financial investment product amount is 100 million KRW, a maximum of only 20 million KRW can be invested in a single stock leveraged product.