Korean retail investors borrow to chase gains, personal loans see biggest increase in five years
According to a report by The Korea Times, industry data shows that as South Korea's KOSPI index continues to break records, a growing number of retail investors appear to be borrowing money to chase the market's rapid rise.
As of last Thursday, the total outstanding personal credit loans at South Korea's five major banks reached 106.99 trillion won (approximately $70.98 billion). This is the highest level since November 2023, when it stood at 107.72 trillion won. This growth is mainly attributed to overdraft credit lines—locally known as "negative accounts"—which allow customers to borrow within a pre-approved limit.
As of last Thursday, the outstanding balance of such credit facilities had reached 41.93 trillion won; this figure reflects the amount actually drawn and used, not the total credit available to borrowers. (Jin Shi)
