Market data released on Sunday showed that as South Korean stocks rebounded from deep lows, local investors have once again aggressively borrowed to buy domestic equities.
According to statistics from the Korea Financial Investment Association (KOFIA), the balance of margin loans used for stock purchases stood at 30.93 trillion won (approximately $21.8 billion) as of Thursday, up from 27.44 trillion won on August 3.
This surge in margin borrowing occurred as heavyweight market stocks such as Samsung Electronics and SK Hynix staged a significant recovery from a volatile period triggered by concerns over the profitability of AI-related investments.
Analysts suggest that with worries about AI investment easing, there are no immediate signs of a cooldown in the South Korean stock market. The level of margin debt is likely to continue rising for some time and could potentially reach new highs.
KB Securities analyst Kim Dong-won commented, "Market concerns have been somewhat alleviated, and investors are cautiously betting that chip manufacturers will undergo a revaluation starting in the third quarter of this year."
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