Red Light for Debt Investment in 20s... Credit Loan Balance Surges 133%

[Asia Economy Reporter Park Jihwan] The craze for investing in stocks using borrowed money, known as 'debt investment,' is most prominent among people in their 20s. This year, the growth rate of credit transaction loan balances borrowed from securities firms for stock purchases was highest among those in their 20s.

According to data received by Jang Hyeyoung, a member of the National Assembly's Planning and Finance Committee from the Justice Party, from the Financial Supervisory Service on the 7th, the credit transaction loan balance as of the end of August was 16.2177 trillion KRW, an increase of 76.1% compared to the end of last year.

By age group, the growth rate was highest in the 20s. It rose from 162.4 billion KRW at the end of last year to 379.8 billion KRW at the end of August this year, an increase of 133.8% (270.5 billion KRW). This growth rate is significantly higher than that of the 30s (71.6%) and 40s (70.5%) during the same period.

The credit loan balance for those in their 20s, which was 162.4 billion KRW at the end of last year, decreased to 109.3 billion KRW at the end of March when the COVID-19 pandemic fully unfolded and the KOSPI plunged below 1,500 points. However, with the stock price rebound, it surged more than twice from April to August. As of the end of August, the cumulative number of securities accounts across all securities firms was 71.34 million, an increase of 10.69 million compared to the end of last year. By age group, the largest increase was among those in their 40s (2.54 million), followed by those in their 20s (2.46 million) and 30s (1.45 million).

Assembly member Jang stated, "The debt investment phenomenon among people in their 20s is a concerning situation," adding, "This is not due to a get-rich-quick mentality but rather anxiety caused by widening asset gaps and entrenched inequality." He further argued, "A foundation must be established so that young people without assets do not feel anxious."

This content was produced with the assistance of AI translation services.