KOSPI Nears 7,000 Mark as Retail Investor Inflows Surge

As the KOSPI approaches the 7,000-point mark, retail investors' enthusiasm for stock investing is heating up. The scale of 'borrow-to-invest' is growing, and investment funds flowing into equity ETFs are reaching record highs, converging on the market. The trend of retail investors 'borrowing to invest' is evident in the sharp increase in outstanding personal overdraft loans at commercial banks. The outstanding balances of personal overdraft accounts at five major banks – KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup – increased by 715.2 billion won in just three banking days since May, reaching a total of 40.5029 trillion won.

The number of retail investors placing orders of 100 million won or more has also surged. Last month, there were 1,193,158 instances of individuals placing orders of 100 million won or more on the stock market, the highest figure in five years and three months. As of the 7th of this month, the average number of large orders per day stood at 83,067, an increase of over 50% compared to 54,234 in April.

A trend of domestic investors, known as 'Seohak Gaemi' (retail investors investing overseas), returning to the domestic stock market is also emerging. Net sales of overseas stocks increased last month, and net assets of domestic equity ETFs surpassed 200 trillion won for the first time, growing rapidly.