South Korea's Financial Supervisory Service again warns of the risks of excessive "leveraged investment."

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BlockBeats news, on July 7, Lee Chan-jin, Governor of the Financial Supervisory Service of South Korea, issued another clear warning at the 3rd Consumer Risk Response Meeting held yesterday, stating that "the phenomenon of leveraged investment is spreading to the entire financial industry and may seriously impair household financial soundness."

Lee Chan-jin emphasized that when household financial assets are excessively concentrated in specific assets or when leverage investments beyond affordability are used, it not only poses a significant risk of loss but also severely undermines the overall financial health of households.

In addition, Lee Chan-jin demanded that financial companies must fully explain the structure and risks of leveraged investment throughout the entire process of designing, manufacturing, and selling financial products, and strictly manage to avoid inducing sales behaviors that encourage "borrowing to invest."

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