Financial authorities consider limiting leverage investment ratio in a single stock to 20%

The financial authorities are reviewing a plan to limit individual investment allocations in singlestock leveraged products to within 20%. The aim is to reduce excessive concentration of funds and strengthen investor protection. On the 28th, Financial Services Commission Chairman Lee Eogwon said at a meeting with the financial investment industry that the authorities would first assess the effects of existing measures, such as strengthening the base deposit requirement, and prepare additional responses if necessary. The authorities are primarily considering a way to prevent 'allin investing' by limiting the share of singlestock leveraged products among investment assets. They are also reviewing tighter investor qualification standards, including mandatory retraining, expanded pretrading simulations, and the introduction of requirements for investment experience. They asked asset managers to spread out rebalancing timing to reduce market volatility, and requested cooperation from securities firms in managing liquidity. Earlier, the FSC announced a temporary suspension of new listings and advertising, along with a raise in the base deposit requirement to 30 million won, and this measure will take effect early from the 31st.