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Korean Retail Traders Flock to Leveraged Funds as Stock Market Soars

Financial Times Markets •
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Korean retail investors are rapidly increasing their use of leveraged funds to capitalize on the nation's surging stock market, a trend directly encouraged by government policy. Korean retail traders are borrowing heavily to amplify their equity purchases, betting on continued gains in domestic markets. This surge in leveraged trading, facilitated by financial institutions offering these products, reflects the government's push for broader retail participation in equities, aiming to boost market liquidity and domestic economic growth. The move signals a significant shift in investment behavior, with retail investors now playing a much larger role in driving market movements.