South Korean retail investors borrowed a record amount from securities firms in the second quarter, driven by the local stock market's extended rally, according to industry data reported by Yonhap.
The surge in margin debt highlights the aggressive positioning of individual traders as equity prices climbed to new heights.
The spike in leverage underscores the breadth of the rally in Seoul, where retail participation has become a dominant force.
As prices rise, the willingness of individual investors to borrow against their portfolios increases, amplifying both gains and potential downside risk.
This dynamic is a key indicator of market sentiment and liquidity conditions in the Korean equity market.
The development comes as global markets have seen a broad-based recovery, with US equities posting their best quarterly performance in years.