South Korean retail investors are increasing leveraged bets on domestic equities as the local stock market rebounds from recent lows. Data from the Korea Financial Investment Association, or KOFIA, showed that margin debt used to buy shares reached 30.93 trillion won, equivalent to $21.8 billion, as of Thursday. That compares with 27.44 trillion won on Aug. 3.
The rise in margin balances comes as major index heavyweights including Samsung Electronics and SK Hynix have recovered sharply from earlier market turbulence tied to concerns over profits from AI-related investment. The rebound in those stocks appears to have encouraged local investors to return to margin-funded buying.
Analysts cited in the source said worries linked to AI investment have eased, and that there are no immediate signs of the South Korean stock market cooling. On that view, margin balances could keep rising for some time and may reach a fresh record.
South Korean investors have returned to large-scale margin buying of domestic stocks as the country’s equity market rebounds from recent lows.
Margin balances rise above early August levels
Statistics from the Korea Financial Investment Association (KOFIA) show that outstanding margin debt used to buy shares stood at 30.93 trillion won, or about $21.8 billion, as of Thursday. That was up from 27.44 trillion won on Aug. 3.
Heavyweight stocks lead the recovery
The increase in leveraged buying came as major market heavyweights such as Samsung Electronics and SK Hynix posted a sharp recovery. Those stocks had previously been hit during a volatile stretch driven by concerns over profits tied to AI-related investment.
Analysts see no immediate cooling
According to the source, analysts said concerns around AI investment have eased. They added that there are no immediate signs of the South Korean stock market losing momentum, and margin balances may continue to climb for a period of time, with a new high still possible.
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