The Financial Supervisory Service of South Korea will monitor margin trading and securities lending by brokerages to prevent further losses for retail investors.

According to Odaily, the Financial Supervisory Service (FSS) of South Korea has requested financial institutions to strengthen market stability and proactive risk management. Regarding the stock market, the FSS announced it will track brokers' margin trading and securities financing activities in order to prevent amplified losses for individual investors due to market volatility. At the same time, to address the potential solvency pressure some financial and insurance companies might face, regulators plan to push these firms to reduce their asset-liability duration mismatch risks.

Lee Chan-jin, head of the Financial Supervisory Service, stated that with the volatility of South Korea's stock market increasing, ongoing tensions in the Middle East, and rising expectations of further rate hikes in the United States, financial market volatility may further intensify in the future. Relevant institutions must make full preparations and continuously monitor the 24-hour trading mechanism of the foreign exchange market as well as the financing and operational conditions of financial institutions. (EToday)