South Korea's Margin Financing Hits Record 37.7 Trillion Won, Surges 400 Billion in 2 Days

According to the Financial Investment Association, South Korea's margin financing balance on Korean stock exchanges reached a record 37.7 trillion won as of July 2, up 400 billion won in just two trading days. Meanwhile, major banks' overdraft loans surged 500 billion won, as depositors withdrew 18 trillion won from savings to fund stock purchases. The Bank of Korea noted that the combined ratio of margin financing and leveraged ETF balances to total stock market capitalization reached 0.8% as of April, exceeding the previous peak of 0.76% in October 2020, signaling rising leverage-driven investment risks.
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