Lee Chanjin: "Amid Middle East Instability and Rising Volatility... Reviewing Individual Investor Risks in Leveraged ETFs"
by Kwon Haeyoung
Published 10 Mar.2026 11:41(KST)
Order to Monitor Potential Risks in the Financial Sector, Impact of Rising Oil Prices and Exchange Rates
24-Hour Emergency Response System Activated
Lee Chanjin, Governor of the Financial Supervisory Service, has ordered a review of individual investors’ activities, such as leveraged Exchange Traded Funds (ETFs), as financial market volatility increases amid instability in the Middle East.
On March 10, while on an overseas business trip in Basel, Switzerland, Governor Lee held an executive meeting via video conference and stated, “All departments must recognize the seriousness of the situation and, under the leadership of the in-house Middle East Emergency Response Task Force (TF), make every effort to ensure financial market stability and maintain the soundness of financial institutions.”
He first stressed that, as financial market volatility expands, investor risks may increase. Therefore, he called for strengthening guidance regarding investment risks associated with margin trading, including the possibility of forced liquidation, and instructed that the securities industry should be properly supervised to ensure robust risk management and investor protection.
He also directed that the investment activities of individual investors in leveraged ETFs should be closely monitored and that guidance on key considerations for investors be enhanced to prevent significant losses due to increased volatility.
He emphasized the need to intensively inspect unfair trading practices, such as the dissemination of false information or front-running in chat groups by stock market influencers through YouTube and social networking services (SNS). He also called for swift investigations and strict action in the event of any violations.
Additionally, he ordered a thorough review of potential risk factors by financial sector in preparation for heightened financial market volatility, and called for close monitoring of the impact of rising oil prices and exchange rates by industry, as well as corporate liquidity and funding conditions.
Governor Lee stressed, “A 24-hour emergency response system must continue to operate to closely monitor domestic and international financial markets until the situation in the Middle East is stabilized,” and added, “If necessary, please cooperate with relevant organizations to implement market stabilization measures in a timely manner.”
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.