July 29, according to the Chosun Ilbo, South Korea's Financial Services Commission (FSC) Chairman Lee Eog-weon stated that for 'single-stock leveraged products,' which have been identified as one of the triggers for sharp fluctuations in the domestic stock market, the authorities will consider restricting trading to professional investors when necessary. On the 29th, Lee Eog-weon attended a Government Affairs Committee business report in Seoul. In response to a question from a Democratic Party lawmaker who proposed that 'investment qualifications for single-stock leveraged products should be limited to professional investors,' he replied, 'If it is indeed necessary, there is a plan to raise the investment threshold to professional investors.' Professional investors are defined as those who have maintained an average month-end balance of 50 million won or more in financial investment products for at least one year within the past five years, while also meeting related requirements for income, professional qualifications, and assets. This statement is interpreted as an official hint that, given the high-risk nature of single-stock leveraged products, authorities may consider restricting access for ordinary retail investors. Regarding the plan to lower the leverage multiple of single-stock leveraged products, Lee also said that once the National Assembly prepares the relevant legislation, the authorities will review it. He stated, 'Since the tracking multiple of 2x is indeed too large, lowering it is expected to be effective in alleviating market volatility.'
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