Retail Investors' Borrowed Funds for Stock Trading Surge by 18 Trillion Won

The amount of money individual investors have borrowed from brokerages and other institutions to buy stocks (credit loans) surged by nearly 18 trillion won last month, reaching 38 trillion won. This figure is significantly higher than the average over the past five years.

According to an investigation by the Financial Supervisory Service (FSS), the balance of individual credit loans stood at 38 trillion won as of the end of last month. This represents an increase of 17.9 trillion won compared to the 5-year average of 20.1 trillion won. The balance of loans secured by stocks also increased by 5.9 trillion won from the 5-year average of 20.4 trillion won, reaching 26.3 trillion won. The average daily trading value of leveraged ETFs by individual investors was 3.5 trillion won as of the end of last month. This is an increase of 1.3 trillion won from the previous month and 2.9 trillion won from the 5-year average.

The FSS is closely monitoring this upward trend and exploring measures for market stabilization. The FSS views the potential for increased investor losses and strain on financial institutions' soundness due to expanding market volatility. The FSS is continuously monitoring leveraged investment indicators and, when necessary, will inspect financial institutions' risk management system operations to prevent the spread of excessive leveraged investments. FSS Governor Lee Chan-jin mentioned at a press conference on the 22nd that the 'debt-fueled investment' craze is being closely monitored. The FSS's intensified oversight measures were announced as part of efforts to maintain the soundness of the financial market.