South Korea's Financial Supervisory Service Warns of Leverage Investment Risks

The head of South Korea's Financial Supervisory Service, Lee Chan-jin, warned at the third Consumer Risk Response Agreement meeting that the phenomenon of leverage investment is spreading throughout the financial industry and could severely harm household financial health. He pointed out that households with financial assets overly concentrated in specific assets or using leverage investments beyond their capacity face significant loss risks, which can severely undermine overall household financial health. Lee Chan-jin urged financial companies to fully explain the structure and risks of leverage investments throughout the entire process of designing, manufacturing, and selling financial products, and to strictly manage and avoid sales practices that induce borrowing for investment.

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