[THE INVESTOR] South Korea’s stock purchases on credit hit a fresh high of nearly 8 trillion won (US$7.2 billion), as more investors have borrowed money from brokerage firms to bet on the bullish market, data showed Aug. 26.

Outstanding margin loans jumped to 7.78 trillion won as of Aug. 24, the highest level this year, according to the data compiled by the Korea Financial Investment Association and financial information provider FnGuide.

The finding has added to concerns over possible damages should there be sudden swings in prices.

The volume of margin loans here declined starting in mid-June, but rebounded to 6.73 trillion won on June 29.

In particular, the volume of margin loans at the secondary KOSDAQ market sharply rose to around 4.4 trillion won from 3.7 trillion won early last month, while that at the main KOSPI bourse stayed around 3.3 trillion won.

(theinvestor@heraldcorp.com)