Unprecedented Stock Market Rally in South Korea Fuels Record Borrowing and Investment Frenzy

Deep News05-14

In South Korea's $4.6 trillion stock market, a wave of exuberance is sweeping across the nation. Propelled by a surge of over 200% in the past year—far outpacing all other major global markets—individual investors are borrowing record sums to pour into equities. Trading volumes have skyrocketed to historic highs, with daily swings of 5% or more becoming commonplace, cementing the Korea Composite Stock Price Index (Kospi) as the world's most volatile major benchmark.

Fear of missing out (FOMO) has become pervasive, permeating workplaces, restaurants, and family gatherings. The sentiment is intensifying, with a growing number of parents opening trading accounts for their children. According to data from Toss Securities, the number of new stock accounts opened for individuals under 18 surged nearly tenfold year-on-year in the first quarter.

"The mood among retail investors is extremely feverish, almost maniacal," said Jang Eunjung, a 37-year-old video creator from Seoul. As stocks soared, her YouTube channel focused on stock investing grew from a handful of viewers to over 1.3 million subscribers. "Will we ever see such a vertical rally again?"

This trading frenzy is primarily driven by the pivotal role of South Korean chipmakers in the artificial intelligence boom. It has transformed the long-dormant market into one of the world's most critical barometers for gauging the intensity of the global AI investment mania.

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