Individual Investor Margin Trading Balance Tops 34 Trillion Won; Brokerages Move to Limit Investment

As individual investors' appetite for 'debt-fueled investing' heats up, major securities firms including KB Securities, Mirae Asset Securities, Toss Securities, and Kakao Pay Securities have successively announced measures to restrict margin trading and leveraged investments. The backdrop to these actions is the increase in high-risk investment funds seeking to leverage the bull market.

According to the Korea Financial Investment Association, the balance of margin trading loans surpassed 34 trillion won for the first time on April 17, 2024, and increased to 34.2592 trillion won by April 20.

KB Securities has halted new purchases of Contracts for Difference (CFD) on SK Hynix. CFD is a product that settles only the price difference without holding the actual asset. KB Securities implemented a restriction on new CFD purchases for SK Hynix.

Mirae Asset Securities has raised the margin requirements for certain stocks and restricted new margin loans and extensions.

Toss Securities has increased the margin requirement to 100% for some stocks, including Ecopro HN, Caregen, and Vitzrocell.

Kakao Pay Securities has suspended new margin loan purchases due to the exhaustion of its credit line. Kakao Pay Securities has fully suspended applications for new margin loan purchases until further notice, citing the depletion of its credit line.