Debt-fueled investing resurges as the KOSPI surges; credit loans rise in a month by 3 trillion won
As the KOSPI surged, individual investors increased their leveraged buying, and bank credit loans rose in a month by 3 trillion won. Credit loan rates have climbed to the high 5% range.
As the KOSPI posted a sharp rise, individual investors have once again stepped up “debt-fueled investing” (borrowing money to invest). The balance of bank credit loans was reported to have increased over the course of a month by 3 trillion won. The related statistics were reported based on data as of the end of 2026 of 5.
Credit loan rates 5climbed to the high % range. It was confirmed that loan demand did not decline despite rising interest rates, and instead increased. As a result, credit loans grew rapidly.
The sharp rise in the stock market and the increase in credit loans have coincided in time. The data reported that individual investors had increased their use of borrowed money to buy stocks. Banks are closely monitoring related trends.
The increase is based on figures confirmed in bank credit loan statistics. The statistics were published by aggregating changes in balances on a monthly basis. Similar trends were reported across the banking sector.
Some reports cited the rise in the stock market as a reason for the increase in credit loans. A notable feature was that demand for investment purposes remained strong even as lending rates rose to a high level. The figures are based on financial institutions’ aggregate results.
In sum, individual investors’ leveraged buying, coinciding with the sharp rise in the KOSPI, led to an increase in credit loans. Credit loan rates are elevated. Short-term figures show an increase of 3 trillion won.
Sources: 매일경제 경제
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