South Korean retail investors borrowed more than 30 trillion won in margin loans in April, double the level a year earlier, as the KOSPI climbed past 6,000 points in February. [1]
The surge in debt-financed stock buying comes as surging home prices and pension worries push more individuals toward higher-risk bets in the stock market. [1]
The rise has put pressure on the South Korean government to protect retail investors as borrowing for shares accelerates alongside the market rally. [1]
The KOSPI first crossed the 6,000-point mark in February, a milestone that has helped fuel demand for leveraged stock purchases. [1]
Margin loan balances for retail investors then jumped in April, when they doubled year-on-year to more than 30 trillion won, or about $20 billion. [1]
The government now faces the task of reining in excess risk without choking off investor demand as the market remains elevated after the February break above 6,000 points. [1]
