Korean retail investors borrow to chase gains, personal loans see biggest 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 seem to be borrowing money to chase the market's rapid rise.

As of last Thursday, the total outstanding personal credit loans from South Korea's five largest 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. The 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 instruments had reached 41.93 trillion won; this figure reflects the funds actually drawn and used, rather than the total amount of credit available to borrowers. (Jinshi)