Korea's Financial Supervisory Service will track securities firms' margin trading and securities lending to prevent the expansion of retail investor losses

Odaily News The Financial Supervisory Service (FSS) of South Korea has requested financial institutions to enhance market stability and forward-looking risk management. In the stock market, the FSS announced it will track securities firms' margin trading and securities lending activities to prevent market volatility from expanding losses for individual investors. At the same time, for certain financial insurance companies facing potential solvency pressure, regulators plan to push them to reduce the risk of asset-liability duration mismatches.

Lee Chan-jin, Governor of the Financial Supervisory Service, stated that against the backdrop of heightened volatility in the South Korean stock market, ongoing tensions in the Middle East, and rising expectations of further interest rate hikes by the U.S., future financial market volatility may further expand. Relevant institutions need to be fully prepared and continue monitoring the operation of the 24-hour foreign exchange trading mechanism, as well as the financing and operational conditions of financial institutions. (EToday)