South Korea Considers 20% Cap on Leveraged Stock Investments After Record July Liquidations

According to China News Network, South Korea's financial regulators are considering introducing personal investment caps to cool overheated leveraged stock products. The proposal would limit individual investors' leveraged stock positions to no more than 20% of their total financial investments. As of July 13, cumulative forced liquidations in July reached 3.442 trillion Korean won (approximately $2.5 million), with over 1.2 million leveraged retail accounts triggering margin calls. Approximately 320,000 to 360,000 accounts have been fully liquidated by brokers, with some investors owing money back to securities firms.
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