South Korea Considers Capping "Borrowing to Invest in Stocks" at 20%

On July 28, according to a report by the Chinese website of South Korea's "JoongAng Ilbo" cited by China-Singapore Jingwei, in response to the stock market downturn, Lee Eok-won, Chairman of the South Korean Financial Services Commission, stated at a seminar on July 28 that priority will be given to closely monitoring the policy effects of supplementary measures such as strengthening the basic deposit, which will be implemented from July 31. Lee Eok-won also stated that if demand is not fully calmed, additional measures will be studied and prepared in advance. According to reports, the plan currently being studied is to set total amount management rules, limiting the proportion of individual stock leverage in the total investment amount of individual financial investment products to within 20%. For example, if the investment amount of financial investment products is 100 million Korean won, then at most 20 million Korean won can be invested in a single stock leverage product.