More People Borrow Money to Buy Stocks in South Korea | Personal Finance

Many people in South Korea are borrowing money to buy stocks as the stock market keeps going up.

The KOSPI stock index reached a new record and moved above 8,400 points. This strong rise has made many small investors want to join the market.

Data from the country's five biggest banks showed that personal loans reached 106.99 trillion won. This was the highest level seen since late 2023.

In the last month alone personal loans grew by 2.65 trillion won. This was the biggest monthly jump in about five years.

A large part of the borrowing came from special bank accounts that let people use extra money when needed. Many investors used these accounts to get cash for stock buying.

Bank experts noticed something unusual. People often pay back part of their loans after they get their monthly salary. This time, loan balances went up instead of down.

This shows that some investors may have borrowed even more money after payday. Many appear eager to buy stocks while prices are rising.

Experts say borrowing money for stock investing can be risky. If stock prices fall people could lose money and still have to repay their loans.

Banks and financial officials are watching the situation closely as borrowing continues to grow.