South Korean retail investors borrow money to chase gains, personal loans see the largest increase in five years

Golden Ten Data June 1 – According to a report by The Korea Times, industry data shows that as the Korea KOSPI Index continues to break records, an increasing number of retail investors in Korea appear to be borrowing money to chase the market’s rapid rise. As of last Thursday, the total outstanding personal credit loans at Korea’s five largest banks reached 106.99 trillion won (approximately $70.98 billion). This is the highest level since November 2023, when it stood at 107.72 trillion won. The recent surge is mainly driven by revolving credit lines—commonly referred to locally as “negative accounts”—which allow customers to borrow within a pre-approved limit. As of last Thursday, the outstanding balance of such credit tools had reached 41.93 trillion won; this figure reflects funds that have actually been withdrawn and used, not the total amount of credit available to borrowers.