Samsung Electronics and SK hynix bets fueled by borrowed money 36trillion won surpassed
The scale of individual investors’ borrowing to invest 36has exceeded trillion won. As cases emerged of investors pouring money into Samsung Electronics and SK hynix, KOSPI volatility increased the burden of margin loans.
More individual investors are borrowing money to buy stocks. Some investors who feel they lack funds for stock investments are considering margin loans. A margin loan is a way to borrow money from a securities firm to buy stocks.
36Im Ji-ung, one of three individual investors, started investing in stocks early this year. He said he had invested only in Samsung Electronics and SK hynix, without considering other stocks. He explained that checking his returns rise every morning had recently become a hobby.
Im said his returns would have been higher if he had invested more. He said that if he had had just 1000won more in starting capital, he would have earned at least 300won more. He said he had broken a savings deposit to add to his stock investment funds, but was also considering a margin loan.
This is not a concern unique to Mr. Lim. The amount of debt-financed investing by individual investors has36exceeded trillion won. Debt-financed investing means borrowing money to invest.
Investors are borrowing money because they feel they cannot afford to miss out now. The flow of money into large-cap semiconductor stocks such as Samsung Electronics and SK hynix was also mentioned. Returns improved as share prices rose, but some investors complained that small investments meant small profits.
As the KOSPI wavered, individual investors who had borrowed money became more anxious. Investors who borrow against their shares face the burden of repaying the money when share prices fall. Some also said that although returns had improved, small investments meant small profits.
Sources: 파이낸셜뉴스 증권
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