The Financial Supervisory Service is preparing stronger protections for individual investors using leverage, including credit financing and margin trading, as it marks the first anniversary of its consumer-protection reform initiative. The agency is in final-stage consultations with the Financial Services Commission on measures that could restrict margin trading by minors, require additional confirmation from elderly investors, provide simulations of forced-liquidation conditions and potential losses, and improve advance notification procedures. The FSS previously reported that daily KOSPI return volatility rose 2.5-fold, from 1.4% in 2025 to 3.6% in the first half of this year, and said it would deploy phased emergency responses according to market conditions. The regulator also reported 94 regulatory improvements based on complaints and disputes, 463,000 records shared through its ASAP voice-phishing platform and 66.36 billion won in prevented losses. Yet complaints and disputes increased faster than resolutions, while short-term sales incentives remained a concern: ETF trusts had an average holding period of 42 days, with 94.6% terminated within six months and 91.7% using front-end load fees. The FSS plans to launch an AI Complaint Portal in January next year and refine controls for emerging risks from financial firms' use of AI.