KOSPI's Slow Climb Triggers Wave of Debt-Backed Trading Exceeding 32 Trillion Won

The so-called "debt-financed investment," where individuals borrow money to invest in the domestic stock market, is on an upward trend again.

As of the 21st, the margin loan balance was tallied at 32.4162 trillion won.

After recording the 32.1 trillion won range on the 30th of last month, the margin balance dropped to the 27.4 trillion won range on the 4th of this month, but has since risen for four consecutive trading days.

Margin trading involves retail investors borrowing funds from securities firms to purchase stocks and is considered a key indicator of debt-financed investing.

Margin balances typically increase during bull markets. As the KOSPI index, which had fallen to the 6,200 range early this month, gradually regained a bullish trend by recovering the 6,900 level on the 21st, these balances have been on the rise.

Conversely, investor deposit funds, which serve as waiting capital for the stock market, dropped significantly.

As of the 21st, investor deposits were tallied at the 100.7 trillion won range, down by about 4 trillion won from the previous session.

Investor deposits decrease when retail investors purchase stocks or withdraw funds, which is analyzed to mean that investors are actively putting their money to work rather than leaving it idle.

While unsettled short-term margin trading—viewed as ultra-short-term debt-financed investing—stood at 1.0715 trillion won, the amount of forced liquidation due to unpaid loans surged to 48.3 billion won.

This is more than five times the 9.3 billion won recorded in the previous session's forced liquidations, and the figure has continued to surge significantly since the 21st, when the KOSPI rebounded.

Reported by Kim Taewon | Video by Kim Minji | Graphics by Yang Haemin | Produced by SBS Digital News
※ Please note: This article was translated by AI and may contain errors.