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South Korea’s FSS chief warns again on leveraged stock bets as KOSPI swings
Jul 7, 2026
< 1 min read
by Ashish Kumar
for CryptoPolitan
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Lee Chan-jin, head of South Korea's Financial Supervisory Service, warned that individual investors who borrow excessively to chase rising stocks risk financial ruin, particularly when savings are concentrated in a few positions. The regulator said leverage and lack of diversification increase disaster risk, a cautionary signal for crypto and DeFi margin traders, token investors and broader adoption amid regulatory scrutiny.
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The head of South Korea’s Financial Supervisory Service (FSS), Lee Chan-jin, has reiterated his warning to individual investors who borrow excessively to bet on rising stocks that this could lead to ruin. The risk of financial disaster increases when savings are funneled into a few select investments or money is borrowed. Lee spoke on the...
