Korean retail investors borrowing to chase gains, personal loans see largest increase in five years

Odaily Planet Daily News According to reports from The Korea Times, industry data shows that as South Korea's KOSPI index continues to break records, more and more retail investors appear to be borrowing money to chase the market's rapid rise.

As of last Thursday, the total outstanding personal credit loans of South Korea's five major banks reached 106.99 trillion won (approximately 70.98 billion USD). This is the highest level since November 2023, when it stood at 107.72 trillion won. This growth is mainly driven by overdraft credit lines — locally known 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balance of such credit instruments had reached 41.93 trillion won; this figure reflects funds that have actually been withdrawn and used, not the total credit available to borrowers. (Jinshi)