KOSPI Correction Slows 'Bittu'... 389 Billion KRW Decrease in 3 Days

[Image source=Yonhap News]

[Asia Economy Reporter Park Jihwan] Recently, as the domestic stock market's upward momentum has stalled, the practice of buying stocks on margin, known as 'debt investment,' has also turned to a declining trend.

According to the Korea Financial Investment Association on the 31st, as of the 28th, the outstanding balance of margin loans by individual investors decreased by 388.7 billion KRW compared to the 25th, totaling 21.2444 trillion KRW.

The outstanding balance of margin loans refers to the amount borrowed by individual investors from securities firms for stock investments. As the stock market experienced an unprecedented rally, the margin loan balance had been hitting record highs daily since the end of last year. In January alone, it increased by more than 2 trillion KRW, surging to 21.6331 trillion KRW on the 25th, before turning to a decline last week.

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With the market plunging day after day, the KOSPI 200 Volatility Index (VKOSPI), commonly called the fear index, closed at 35.73 on the 29th, up 7.98% from the previous day. This is the highest level in seven months since June 18 (37.05).

Market experts advise that, given the increasing market volatility, it is necessary to focus on risk management for the time being.

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