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South Korean Stock Market Hits New High as Retail Investors Borrow to Chase Gains, Personal Loans See Largest Increase in Five Years

1 hours ago

### June 1: Booming South Korean Stock Market Sparks Surge in Personal Loans South Korea’s red-hot KOSPI index—consistently hitting record highs—has fueled a surge in personal loans as local retail investors borrow to enter the market. As of last Thursday, outstanding personal loans at the country’s five largest banks climbed to 106.99 trillion won ($709.8 billion), the highest level since November 2023 (when it reached 107.72 trillion won). The 2.65 trillion won monthly increase is the sharpest rise since April 2021. This lending growth stems mainly from overdraft credit limits, whose outstanding balance now stands at 41.93 trillion won. The stock market’s continuous rally has spurred retail investors’ demand for leveraged investments, driving a rapid rebound in personal loan volumes. Per Bitget market data, both South Korea and Japan’s stock markets notched new highs again today. The KOSPI surged 3% intraday to 8,733.67 points, while Japan’s Nikkei 225 broke through 67,000 points to hit another historic high, with a 1% intraday gain.
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