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'I couldn't breathe':South Korea's frenzied stock trading exposes margin loan risks
['July', 'Min Read']
Yahoo News - Latest News & Headlines
Violent swings in South Korean stocks triggered a cascade of forced liquidations by his brokerage, wiping out the gains.
Within weeks, his account had fallen below his initial investment, leaving him under such strain that he said: "I literally could not breathe."
For many young South Koreans, the allure of leverage is rooted in a harsher reality beyond the trading screen.
"Since stocks are volatile assets, that volatility, if it moves upward, allows for rapid wealth creation," Lee said.
'POLICY ERROR'According to the Korea Financial Investment Association, margin loan balances in the domestic stock market reached 38.63 trillion won on June 24, the highest level on record.