Korean stocks rebound as Korean investors once again buy on margin

Odaily News: As the Korean stock market rebounds from its lows, local investors in Korea have once again aggressively purchased domestic stocks on margin. According to statistics from the Korea Financial Investment Association (KOFIA), as of Thursday, the margin debt balance used for stock purchases reached 30.93 trillion Korean won (equivalent to $21.8 billion), up from 27.44 trillion Korean won on August 3. This surge in margin financing comes amid a sharp recovery in market heavyweights such as Samsung Electronics and SK Hynix from the volatility triggered by concerns over profitability of AI-related investments. Analysts believe that, given the easing of concerns related to AI investment, there are no immediate signs of the Korean stock market cooling down, and the scale of margin financing may continue to rise for some time, potentially reaching new highs.