South Korea Limits Stock Loan New Issuance to 30% of Lending Volume

South Korea's Financial Services Commission announced on July 15 new risk management measures for stock loans offered by online investment intermediaries, effective immediately. The regulator will cap monthly new stock loan issuance at 30% of the previous month's total connected lending (excluding stock loans) and limit individual stock loans to 1 billion won per borrower. The measures come as stock loan balances held by online intermediaries surged from 172.5 billion won at end-2024 to 899.3 billion won as of June 30, 2026, driven by increased demand for leveraged stock purchases amid rising market activity.
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