South Korea plans to introduce "emergency powers" to limit the leverage ratio of individual shares to 1.5 times
2026-08-03 10:20:13
According to CoinMeta, South Korean financial regulators are pushing to introduce an "emergency action authority" that would allow regulatory agencies to quickly reduce the leverage ratio of single-stock leveraged products in emergency situations. Previously, such products were considered one of the main factors contributing to severe market fluctuations. Regulators are also studying other restrictive measures, including setting upper limits on leveraged investment amounts and further increasing the requirements for initial margins. According to Yonhap News, the Financial Services Commission of South Korea (FSC) will work together with the Financial Supervisory Service (FSS) to draft amendments to the "Financial Investment Services and Capital Markets Act" to establish a legal basis for taking market stabilization measures in emergencies. The core of this adjustment is to allow financial regulators to temporarily adjust the leverage ratio of single-stock leveraged products. Currently, single-stock leveraged products in South Korea are designed to aim for a 2x return. With the authorization for emergency actions, if it is deemed necessary to protect investors, the leverage ratio could be reduced to 1.5x or even 1x.
Source:Jin10 Data
This content is for market information only and does not constitute investment advice.
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