The Financial Supervisory Service of South Korea has once again warned about the risks of excessive leveraged investment
By: rootdata|2026/07/07 20:45:00
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Lee Chan-jin, the head of the Financial Supervisory Service of Korea, reiterated a warning at the third Consumer Risk Response Agreement meeting held yesterday, stating that "the phenomenon of leveraged investment is spreading throughout the financial industry and may seriously harm the financial health of households." Lee emphasized that when household financial assets are overly concentrated in specific assets or when leveraging beyond their capacity, they not only face significant loss risks but also severely weaken the overall financial health of households.
In addition, Lee requested that financial companies must fully explain the structure and risks of leveraged investments throughout the entire process of designing, manufacturing, and selling financial products, and strictly manage to avoid inducing "borrowed money investment" sales practices.
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