South Korea tightens online stock loans, setting a limit of 1 billion Korean won for a single borrower

The Financial Commission and Financial Supervisory Authority of South Korea have set a maximum limit of 1 billion Korean won for stock loans to a single borrower of online investment related financial companies. As of the end of June, the balance of stock loans related to online investment in the financial industry was 898.3 billion Korean won, an increase of 374.5 billion Korean won from the first half of the year and a 71.5% increase from 351.3 billion Korean won at the end of last year. The Financial Supervisory Commission requires online investment financial companies to limit their monthly increase in stock loans to no more than 30% of the previous month's increase in related loans. This measure will take effect on August 16th. If the company keeps the stock loan balance at the end of each month within the balance level at the end of June, it can be exempted.