As the KOSPI extends its powerful bull run, debt-fueled investing is spreading beyond investors in their 20s and 30s to those in their 50s and 60s. Funds from credit lines, margin loans, and high-risk leveraged ETFs are pouring into the market, with investors across all generations piling onto the rally.
"Buy Now or Miss Out"—Debt-Fueled Investing Spreads Across Generations
According to the Korea Financial Investment Association, the number of active stock trading accounts reached 105.37 million as of November 6. That marks an increase of 7.08 million this year alone and 15.45 million compared with a year earlier.
Cash waiting to enter the market has also surged. Investor deposits stood at 136.99 trillion won as of November 7, a record high.
Debt-fueled investing, in particular, is expanding rapidly. Margin loan balances recently approached 36 trillion won. Margin loans refer to funds investors borrow from brokerages to buy stocks, with the balance representing amounts not yet repaid.
The aggressive investment behavior of investors in their 50s and 60s has become particularly notable, alongside that of younger investors.
According to data submitted by the Financial Supervisory Service to Rep. Kim Sang-hoon of the People Power Party, investors aged 50 and older accounted for 62.3 percent of the roughly 27.2 trillion won in total margin loan balances at the top 10 brokerages as of the first quarter of this year.
Investors in their 50s held 8.98 trillion won, the largest share across all age groups, while those aged 60 and older held 8.02 trillion won. Just a year earlier, those figures stood in the 5 trillion won and 3 trillion won ranges, respectively—meaning balances have nearly doubled.
The brokerage industry attributes this to a combination of post-retirement wealth-building demand and FOMO, or fear of missing out. "The flow of funds is shifting strongly from deposit- and savings-based asset management toward investment-based strategies," a brokerage industry official said. "Anxiety about being left out of the rally is also driving expanded investment."
Credit Lines Flow Into Stocks: "Ride the Bull Market"
Bank lending patterns show a similar trend.
According to the financial industry on November 10, the personal credit line balance at the five major banks—KB, Shinhan, Hana, Woori, and NH Nonghyup—reached 40.50 trillion won as of November 7. Based on actual drawn balances, this is the largest figure in about three years and four months, since January 2023.
In just three business days after the end of April, the balance grew by 715.2 billion won. On a monthly basis, this represents the largest increase in the past two years and seven months.
The market views this as the result of a sharp rise in retail investors pulling in short-term funds to deploy in the stock market.
The KOSPI has hit record highs in recent sessions, driven by a semiconductor rally led by Samsung Electronics (005930.KS) and SK hynix (000660.KS). As the bull market extends, investor sentiment that "now is the time to get in" is spreading across all age groups.
Experts, however, are concerned that much of the current debt-fueled investing may be chasing the peak. If market volatility rises, there is a risk that forced liquidations could hit the market all at once.
Leverage Training Tops 10,000 Participants—"Risk Also Doubles"
The flow of funds into high-risk products is also striking.
According to the Korea Institute of Financial Investment, applicants for the "Single-Stock Leveraged and Inverse ETF Pre-Training" program launched last month reached 12,412 as of November 5. Of these, 11,303 have completed the training.
On November 22, Korea's market is set to list its first single-stock leveraged and inverse ETFs based on Samsung Electronics and SK hynix. The products track ±2 times the daily return, meaning that while gains can magnify on the upside, losses can also expand rapidly on the downside—making them high-risk instruments.
The financial authorities introduced pre-training requirements and a minimum deposit of 10 million won in consideration of these risks.
Recently, investors betting on declines have also seen mounting losses. Some "gop-verse" products (2x inverse ETFs) have seen prices cut in half over the past month, with the possibility of delisting being discussed.
The Financial Supervisory Service already summoned major brokerages in March and ordered stronger risk management in response to the expansion of margin loans and leveraged investing.
Experts warn that excessive leveraged investing can be more dangerous precisely during bull markets. "In rising markets, expectations of returns grow, but if volatility expands, the pace of losses can also accelerate very quickly," a financial investment industry official said. "A long-term perspective, diversified investing, and risk management are important."
