Korean Madness
Granny goes all in
Bullish: Koreans will destroy their retirements on the bubble, but provide fuel for months of mania yet to come
Bearish: Are we there yet?
Overdraft credit loans hit 3-yr high amid stock market rally
As the stock market rallies, a growing number of investors appear to be using short-term liquidity for stock investments," a bank official said. "Due to tighter government regulations on household loans, there also appears to be demand for credit loans to supplement housing-related funding needs."
Brokerages hit jackpot as retail investors borrow more to chase Korea's stock rally
The post included a screenshot of his brokerage account showing he had poured a staggering 2.3 billion won ($1.7 million) into shares of semiconductor giant SK hynix, one of the key driving forces behind Korea’s roaring stock market.
Even more striking, 1.7 billion won of that investment was financed through margin loans borrowed from his brokerage.
“I believe the semiconductor market will continue its upward climb through 2028, but I’m taking a more aggressive approach to grow my assets faster,” he wrote. Four days later, on May 12, he returned with an update claiming he had already locked in 267 million won in profits.
That same day, another Blind post surfaced — this time from a Seoul Metro employee in her 20s, who wrote that rather than missing out on the rally, she would “risk complete collapse,” adding that she had used 150 percent margin financing to fully leverage into stocks.
Banks raise deposit rates as stock rally accelerates cash exodus
A woman surnamed Park in her 60s living in Seoul’s Yangcheon District closed two time deposit accounts worth a combined 50 million won ($33,000) last month and invested the money in shares of Samsung Electronics and SK hynix, Korea’s two chipmaking giants.
“I’ve never really been into stocks and usually stick to safer savings products,” she said. “But lately, everyone around me has been talking about making money in the stock market, so I decided to close the deposit accounts I had opened just a few months earlier at KakaoBank and NH NongHyup Bank.”
Korea’s stock surge draws seniors into risky first-time investing
The problem is that a significant number of seniors are jumping into the market without fully recognizing the risks of stock investing. After ChosunBiz compiled new account openings at the three major domestic securities firms—Mirae Asset Securities, Korea Investment & Securities Co., and Samsung Securities—it found that from Jan. 1 to mid-May this year, the number of newly opened securities accounts by seniors 60 and older increased by around 10% compared with the same period last year. This shows retirement funds are rapidly flowing into risky assets, riding the market's optimism.
Market is primed for a pullback if the symmetry holds.
