Retail investors hit borrowing limits at South Korean brokerages, think tank says

SEOUL, June 10 (Reuters) - ‌Leveraged stock ​investments ​by South Korean retail investors have reached their limits set at local brokerage firms as ‌the country's world-beating stock market rally stretches ⁠borrowing capacity, a think tank said on Wednesday.

"There are caps ‌at each brokerage firm, which ‌are being strictly regulated. The caps have been reached at each brokerage firm, so it is ​difficult for retail investors to borrow more from brokerage firms for investment," President of the Korea ⁠Capital Market Institute Kim Sei-wan told press conference.

The KOSPI has risen 83% ​so far this year, after rising 76% last year, emerging as the world's best ​performer in an AI-driven rally ‌and drawing huge inflows of retail investment in domestic chipmaker stocks such as Samsung ⁠Electronics and SK Hynix.

Retail investments in the KOSPI have reached 79 trillion won ($51.8 billion) so far this year, leading ⁠the rally in the benchmark index, even as foreigners sold ​124 trillion won of shares for profit-taking. Last year, retail investors sold 26 trillion won of KOSPI shares.

Borrowed investments by ‌retail investors in the KOSPI market stood at a record 29 trillion won as ‌of Tuesday, up 71% from 17 trillion won ⁠at the end of ‌2025, according to ​data from the Korea Financial Investment Association.

($1 = 1,524.6900 won)

(Reporting by Jihoon Lee; Editing by Jacqueline ‌Wong)

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Consumer confidence in New Zealand rebounds as inflation outlook softens
• Trump Jr.'s 'Amazon of guns' could make millions under new proposed firearm rule  
• Taylor Swift and Travis Kelce have married in private, NY Post reports