Shinhan Securities said Monday it has strengthened its risk management framework centered on elderly and novice investors to prevent customer losses stemming from expanding leverage investment.
The move comes as the recent rise in leverage investment has heightened risk exposure among customers with limited investment experience, prompting the brokerage to expand preventive customer protection measures. Shinhan Securities said it has overhauled the entire process, from service registration to actual trade execution.
To help investors more clearly recognize the risks, cautionary notices have been added within the loan application and margin trading screens of its Home Trading System (HTS), Mobile Trading System (MTS) and web platforms. The brokerage has also included guidance for elderly investors in margin trading applications and manuals, bolstering its advisory procedures to reflect investment experience, age and trading patterns.
The firm also plans to produce educational videos for novice investors and post them within the MTS. The videos will include plain-language explanations of leverage investment terminology and guidance on the risks of leverage investing. In-person branches and a dedicated non-face-to-face customer consultation center will provide tailored advice, while post-consultation follow-up and risk monitoring are being strengthened based on consultation records.
"Through these measures, we plan to strengthen customer protection while upgrading our risk management framework based on collaboration among internal departments," said Jeong Yong-wook, head of Shinhan Premier. "We will reinforce preemptive responses to protect elderly and novice investors and work to foster a sound investment environment."
