South Korea’s financial regulators have vowed to curb short-term speculation by retail investors, as their bets on tech stocks fuel fears of a market bubble.
Retail investors have made big bets on themes including electric vehicle battery materials, quantum computers and superconductors, making the tech-heavy Kosdaq one of the world’s best performers this year.
“Their investment patterns are highly risky so we are cracking down on leveraged buying and margin call risks,” said Lee Bok-hyun, governor of the Financial Supervisory Service. “They seem to be recently lured by high volatility, which leaves bigger room for strong gains.”
Read the full story on the Financial Times here.