Svmuu News: The Financial Supervisory Service (FSS) of South Korea has called on financial institutions to strengthen market stability and proactive risk management. Regarding the stock market, the FSS announced that it will monitor brokerage firms’ margin trading and securities lending and borrowing activities to prevent market volatility from exacerbating losses for individual investors. At the same time, in response to potential solvency pressures faced by some financial and insurance companies, regulators plan to encourage them to reduce the risk of duration mismatches between assets and liabilities.
Lee Chan-jin, Chairman of the Financial Supervisory Service, stated that against the backdrop of heightened volatility in the South Korean stock market, ongoing tensions in the Middle East, and rising expectations of further U.S. interest rate hikes, financial market volatility may increase further in the future. Relevant institutions must be fully prepared and continue to monitor the operation of the 24-hour foreign exchange trading mechanism, as well as the financing and operational conditions of financial institutions. (EToday)