Shinhan Investment Corp said on Thursday it has strengthened its risk management system, centred on older and novice investors, to prevent customer losses from the expansion of leveraged investing.

Under the move, it revamped processes across the entire cycle from service registration to actual trade execution. It added cautionary wording to loan application and margin trading screens on its HTS (home trading system), MTS (mobile trading system) and web pages.

It also added guidance related to older investors to its margin trading application form and margin trading guide. The measures include strengthening guidance procedures that take account of investment experience, age and trading patterns.

It will also produce educational videos for novice investors and post them on its MTS. The videos will include easy explanations of leverage investment terms and guidance on investment risks.

At branches, it is operating tailored investment counselling by age and circumstances by assigning specialised consulting staff for older investors.

It also provides tailored counselling through specialised consulting staff at its Credit Loan Counselling Center, a dedicated counselling centre for non-face-to-face customers, taking into account customers' financial situation and credit level.

Jung Yong-wook (정용욱), head of Shinhan Premier at Shinhan Investment Corp, said it plans to strengthen customer protection functions while advancing a risk management system based on cooperation among internal departments. He said it will work to create a sound investment environment to protect older and novice investors.