South Korea May Cap Leveraged Stock Holdings at 20% Amid Market Overheating

Regulators consider capping individual leveraged stock exposure at 20% as July forced liquidations hit 344.2 billion won, impacting over 1.2 million retail accounts.

Woofun AI reports that South Korean financial authorities are evaluating stricter controls on leveraged single-stock products, including a potential cap limiting such holdings to 20% of total financial investments. This regulatory consideration follows data showing 344.2 billion won in forced liquidations and over 1.2 million margin calls in July, with hundreds of thousands of accounts fully liquidated.