Margin trading among young Koreans more than doubles

April 29 (Asia Today) -- Margin trading by South Korean investors in their 20s more than doubled over the past year, marking the fastest increase among all age groups, data showed Wednesday.

According to an analysis by the office of Rep. Kang Min-kuk of the People Power Party, based on data submitted by the Financial Supervisory Service from 10 major domestic securities firms, margin loan balances held by investors in their 20s rose from 188.8 billion won ($137 million) in the second week of April 2025 to 423.9 billion won ($307 million) in the second week of April 2026.

The figure represents a 2.24-fold increase, or 124.5%, far above the average 1.96-fold increase across all age groups. It was also about 40 percentage points higher than the increase among investors in their 50s, who recorded the lowest growth rate at 1.85-fold.

Investors in their 30s posted a 1.94-fold increase, while those in their 40s recorded a 1.87-fold rise, showing that the growth among investors in their 20s was especially pronounced.

Market analysts attributed the increase to greater use of margin trading by retail investors during a recent stock market rally. The spread of mobile-based investment platforms and increased participation by younger investors also appear to have driven demand for margin loans.

But concerns are growing because many investors in their 20s have relatively weak income bases. Margin trading can trigger forced selling when collateral ratios fall, increasing the risk of larger losses if market volatility expands.

The financial sector is watching the rise in leveraged investment, with overall margin loan balances recently climbing to about 28 trillion won ($20.3 billion). Some analysts say losses among individual investors could become concentrated if volatility increases in certain market segments.

"The pace of growth in margin trading among young investors exceeds the overall average and needs attention," Kang said. "Financial authorities need to strengthen risk management and education related to margin trading from the perspective of investor protection."

-- Reported by Asia Today; translated by UPI

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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260429010009482

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This story was originally published April 29, 2026 at 7:56 PM.