Seoul, South Korea - June 28, 2026 - The Financial Supervisory Service (FSS) has announced plans to monitor leveraged investment indicators and review risk management at financial firms following a rapid surge in margin financing. According to the FSS, the margin financing balance climbed to 38 trillion won ($24.6 billion) as of May, up 10.7 trillion won from last year.
The FSS will conduct ongoing checks on leveraged investment indicators, including margin financing, securities-backed loans and leveraged ETFs, and inform investors about the risks of excessive leverage. Where necessary, it will review risk management operations at financial firms to curb the spread of excessive leveraged investing.
Background: The surge in margin financing has been accompanied by a rally in the stock market, with trading volumes increasing in exchange-traded funds (ETFs) and index futures and options. While the FSS notes that the share of margin financing relative to market capitalization and investor deposits remains stable compared to historical levels, it is taking proactive measures to address potential risks.
The FSS also announced plans to strengthen life-cycle financial investment education for retail investors, including school-based programs for children and teenagers, tailored counseling for young adults, and age-appropriate education for senior citizens.