Margin debt hits record as retail investors pile into Samsung Electronics, SK hynix

Debt-funded stock investing by South Korean retail investors is showing signs of overheating as the Kospi climbed to a record 9,000 mark, pushing outstanding margin loans to a record 38 trillion won ($24.8 billion) and prompting some brokerages to tighten margin lending rules.

According to the Korea Financial Investment Association, outstanding margin loans in the domestic stock market stood at 38 trillion won as of Thursday, up 200 billion won from a day earlier.

The balance has increased by mo ...