The South Korea Financial Supervisory Service (FSS) has announced plans to closely monitor securities firms' margin financing, securities lending, and margin trading activities. This move aims to prevent increased losses for retail investors amid heightened market volatility. FSS Governor Lee Chan-jin emphasized the need for financial institutions to enhance market stability and risk management, citing ongoing stock market fluctuations, Middle East tensions, and potential U.S. interest rate hikes as contributing factors to potential financial instability. The FSS's proactive measures come as part of a broader strategy to safeguard individual investors from the adverse effects of market turbulence. Governor Lee highlighted the importance of preparedness among financial institutions to mitigate the impact of these external pressures on the South Korean financial markets.