Korean individual investors are borrowing money to chase market gains, resulting in the largest increase in personal loans in five years

Odaily Planet Daily News: According to industry data reported by The Korea Times, as South Korea's KOSPI index continues to break records, more and more individual investors appear to be borrowing money to chase the market's rapid rise.

As of last Thursday, the total outstanding personal credit loans of the five major banks in South Korea reached 106.99 trillion won (approximately 70.98 billion USD). This is the highest level since November 2023, when it was 107.72 trillion won. This increase is mainly driven by overdraft credit lines—commonly known locally as "negative accounts"—which allow customers to borrow within pre-approved limits.

As of last Thursday, the outstanding balance of such credit instruments had reached 41.93 trillion won; this figure reflects the funds that have actually been withdrawn and used, not the total credit available to borrowers. (Jin Shi)