Korean Investors Step Back Into Margin Trades as Local Stocks Rebound

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.