Assets worth 300 million won wiped out in four weeks: Korea’s frenzied stock trading exposes margin loan risks

Odaily reported, citing foreign media, that 24-year-old Korean university student Lee Seung-ho turned 20 million won into 300 million won (approximately $202,500) through fivefold leverage, earning fifteen times his original capital. However, his profits vanished within just four weeks. The pressure was so intense that he admitted, "I can hardly breathe." For many young Koreans, the appeal of leverage stems from a harsher reality outside the trading screens.

Data shows that an average Korean worker needs 14 years of full salary to buy a house in Seoul. Young graduates struggle to accumulate wealth through traditional means, so highly leveraged stock apps have become their only tool for economic equality. Last Thursday, the Korean government announced a ban on newly launched leveraged exchange-traded funds tied to individual stocks. For retail investors holding these products, the risks are asymmetric: in such a volatile market, leverage causes losses during downturns to occur much faster than gains during upswings. Lee Seung-ho said he understands these risks but still firmly believes leverage is the best way forward. (Golden Ten Data)