South Korea’s securities industry will introduce voluntary controls to curb excessive leveraged investing and reduce risks from forced liquidation during market volatility. The Korea Financial Investment Association announced the measures on the 23rd with 10 comprehensive financial investment business entities. From October 1, participating firms will keep total credit extension, including margin loans, within 90% of equity capital, below the legal ceiling of 100%. The industry also plans to raise the minimum margin requirement for margin loans from 45% to 50% within the year. From October 19, brokerages will take their own measures when margin loans on a single stock exceed 15% of their total margin lending, including reducing individual investor limits or raising margin requirements. The association is considering lowering the threshold to 10% depending on market conditions, will periodically check compliance and plans to discuss extending the broader measures to all brokerages. Chun Sung-dae, head of the securities and derivatives division at the Korea Financial Investment Association, said excessive margin borrowing can magnify losses as volatility increases.