Woofun AI reports that South Korea's Financial Supervisory Service (FSS) has directed financial institutions to strengthen market stability and forward-looking risk management. The regulator will monitor securities firms' margin trading and securities lending operations to prevent market volatility from exacerbating losses for individual investors.

Additionally, regulators intend to compel certain financial insurance companies facing potential solvency pressures to mitigate risks associated with asset-liability duration mismatches.

FSS Governor Lee Chan-jin noted that heightened volatility in the South Korean stock market, ongoing Middle East tensions, and rising expectations of further U.S. interest rate hikes may lead to increased future financial market instability. Relevant institutions are required to maintain full preparedness and continue monitoring the 24-hour foreign exchange trading mechanism, alongside the financing and operational conditions of financial entities.