Korea's Financial Supervisory Service again warns of excessive "leveraged investment" risk.

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On July 7, Lee Chan-jin, the head of the Financial Supervisory Service of South Korea, once again issued a clear warning at the 3rd Consumer Risk Response Agreement meeting held yesterday, saying that “the phenomenon of leveraged investing is spreading throughout the entire financial industry and could seriously damage household financial soundness.”
Lee Chan-jin stressed that if household financial assets are excessively concentrated in specific assets, or if leveraged investing is used beyond one’s ability to withstand it, it not only creates a significant risk of massive losses, but also severely weakens the overall financial health of households.
In addition, Lee Chan-jin required financial companies to fully explain the structure and risks of leveraged investing throughout the entire process of designing, manufacturing, and selling financial products, and to strictly manage to prevent sales conduct that induces “borrowing to invest.”
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