Search results for Consumer Risk Response Council
Finance
FSS warns on spread of debt-funded investing, calls for tighter control of leverage
South Korea\'s Financial Supervisory Service warned that debt-funded investing, known as \"bit-tu\", is spreading across the financial sector and called on the investment industry to tighten management and supervision. It cited rising stock market volatility and increases in credit loans, margin trading and investment in single-stock leveraged ETFs. The FSS said consumer losses could grow through forced liquidation if volatility increases. It also discussed an incident in which investor funds were withdrawn without authorisation following a brokerage hacking case.
Finance
Korea regulators tighten monitoring on margin, leverage as KOSPI swings wildly
South Korea\'s KOSPI is extending a roller-coaster run, swinging sharply on foreign selling and moves in U.S. rates and oil prices. The index rebounded 8.42 percent on May 21 after recent steep declines, while volatility gauges climbed. Margin debt hit a record 36.6 trillion won and forced selling rose as the market slid earlier in the week. Regulators are stepping up monitoring and urging restraint ahead of new single-stock 2x leveraged ETFs.
Finance
Zero-tolerance shift in financial supervision puts banks and big tech on edge
Tension is rising across South Korea\'s financial sector as the Financial Supervisory Service shifts supervision toward prevention and launches a Consumer Risk Response Council. The watchdog signalled tougher penalties for sectors with repeated incidents, including big tech and internet-only banks, and said it would apply statutory sanctions without mitigation if similar IT failures recur. Banks and platform-based firms are strengthening internal controls, IT stability and consumer protection governance.