The Financial Supervisory Service flagged rising risks to retail investors on June 18 as stock-market volatility increases and said it may issue further warnings if loss concerns deepen.
South Korea’s Financial Supervisory Service warned on June 18 about single-stock leveraged and inverse products, saying heightened stock-market volatility is increasing risks for retail investors. The regulator said it will closely track investment trends in the products and could take additional steps, including further warnings, if concerns about investor losses intensify. Leveraged products amplify gains and losses, while inverse products are designed to rise when an underlying stock falls, making them particularly sensitive during volatile markets.