[News Space=Reporter seungwon lee] Kiwoom Securities will temporarily suspend operations of its "US Stock Talk Talk" channel, the most subscribed Telegram channel among domestic securities firms, starting December 26th. This decision comes shortly after the Financial Supervisory Service (FSS) recently announced stricter regulations on securities firms' overseas stock marketing, and the industry believes it is directly due to pressure from authorities.

As of December 22nd, the Telegram channel boasted 36,989 subscribers and served as a key information channel for individual investors (known as "seohak ants") interested in overseas stocks. Kiwoom Securities announced that it was "temporarily suspended to provide better service," but industry insiders interpreted this as a signal that "they will comprehensively reorganize their marketing strategy in line with the financial authorities' regulatory stance.

On the 19th, the Financial Supervisory Service (FSS) released the "Interim Results of the Overseas Investment Survey," pointing out that securities firms were competitively engaging in cash-based promotions and excessive advertising to attract overseas stock investors. Consequently, the FSS ordered a complete halt to new cash-based promotions and advertising related to overseas investment by March of next year. The on-site inspections included six of the top securities firms in overseas stock trading and two top management companies in overseas stock funds, warning that any violations of the law or unfair practices could result in the highest level of sanctions, including suspension of overseas stock operations.

In fact, major securities firms' overseas stock brokerage commission revenue from January to November this year reached a record high of KRW 1.95 trillion, yet half (49.3%) of individual overseas stock accounts suffered losses, with the average profit per account only reaching KRW 500,000. Losses from overseas derivatives investments reached KRW 373.5 billion through October, highlighting the need for investor protection and risk management.

The industry is interpreting Kiwoom Securities' decision as a significant signal, signaling a comprehensive shift in how securities firms market overseas stocks, beyond simply suspending channel operations. With financial authorities expected to further strengthen their regulatory stance, securities firms are expected to restructure their overseas stock sales practices to be more prudent and focused on investor protection.