South Korean margin and collateral debt near 59 trillion won as yields rise

Aug 31, 2026 23:08 (20d ago)

South Korean retail investors’ combined margin and securities-backed borrowing reached 58.7561 trillion won at the end of August.
Margin loans stood at 33.2527 trillion won at month-end, while the earlier August 28 daily balance was 33.337971 trillion won after nine consecutive daily increases.
Rising bond yields, semiconductor concentration and foreign selling increased concerns that higher borrowing costs could trigger forced liquidations and deepen market volatility.

South Korean retail investors’ combined margin and securities-backed borrowing reached 58.7561 trillion won ($42.9 billion) at the end of August, while margin-loan balances had also risen for nine consecutive trading days through August 28, according to the Korea Financial Investment Association. Margin loans totaled 33.2527 trillion won at month-end, up 14.92% from July, compared with 33.337971 trillion won on August 28 in the earlier daily reading. Rising South Korean and global bond yields, the Bank of Korea’s increase of its base rate to 3.00% on August 27, and heavy exposure to Samsung Electronics and SK Hynix raised concerns that higher funding costs and forced selling could amplify losses. Securities-backed collateral loans reached 25.5034 trillion won, while average final margin-loan rates across 28 brokerages were 8.94% for 61-to-90-day loans and 8.14% for 16-to-30-day loans. Foreign investors sold a net 9.814 trillion won of South Korean equities in July and 12.017 trillion won in August.