Margin loan-style overdrafts hit 3-year-4-month high as retail investors chase rally

As South Korea’s stock market stays buoyant, retail investors are increasingly using overdraft-style credit line loans, known locally as minus accounts, to avoid missing the rally. According to Yonhap News Agency, the balance of these loans at five major commercial banks has reached its highest level in 3 years and 4 months. The increase reflects stronger demand for investment funds among individual investors during the market upswing. Because credit line loans allow borrowers to draw money within a preset limit when needed, they can be used as standby investment cash. However, investment funded by borrowing may become a burden for retail investors if market volatility rises. Source: yna.co.kr