Stock market waiting funds are flowing out, but margin trading is rising... Money has poured into Samsung Electronics and SK Hynix

While cash waiting on the stock market is leaving, margin trading, or borrowing money to buy stocks, is increasing. In less than a month, the balance of margin loans has risen by more than 4 trillion won, with most of the increase concentrated in the main board. In particular, more than 40% of the new margin on the KOSPI went to Samsung Electronics and SK hynix.
According to the Korea Financial Investment Association on the 30th, the balance of margin loans in the domestic stock market stood at 33.329 trillion won as of the 27th, up 4.394 trillion won, or 15.2%, from 28.935 trillion won at the end of last month. Of that, the margin balance on the Korea Exchange Main Board rose by 3.638 trillion won to 26.479 trillion won from 22.841 trillion won. The KOSPI accounted for 82.8% of the total increase.
The increased margin funds were concentrated in Samsung Electronics and SK hynix. Samsung Electronics' margin balance rose by 1.201 trillion won over the same period, from 4.465 trillion won to 5.666 trillion won, while SK hynix saw an increase of 372.9 billion won, from 4.521 trillion won to 4.894 trillion won. Together, the two stocks accounted for 1.574 trillion won in new margin, or 43.3% of the total increase on the KOSPI.
In other words, more than 4 won out of every 10 won in new margin funds on the KOSPI went into just these two stocks, Samsung Electronics and SK hynix. By contrast, the margin balance on KOSDAQ rose by only 75.58 billion won over the same period, from 6.094 trillion won to 6.850 trillion won.
Market-side funds showed the opposite trend. Investor deposits, which stood at 104.135 trillion won at the end of last month, fell by 7.426 trillion won, or 7.1%, to 96.709 trillion won on the 27th.
Another concern is that the increase in margin has been concentrated in the large semiconductor stocks that have recently driven the KOSPI higher. As both the index and margin funds have piled into Samsung Electronics and SK hynix, any correction in the two stocks could have a larger impact on overall market supply and demand.
Margin trading can amplify gains when stock prices rise, but it also raises the risk of forced selling when prices fall. If a drop in share prices pushes collateral value below a brokerage firm's maintenance margin requirement, investors must provide additional collateral. If they fail to do so, their holdings may be forcibly liquidated.
In particular, if margin is concentrated in stocks with large market capitalization weights, such as Samsung Electronics and SK hynix, the impact of a price correction could spread across the broader market.
A securities industry official said, "If semiconductors undergo a sharp correction, selling triggered by collateral shortages could spread to other stocks and increase volatility across the market."
[email protected] Choi Doo-sun Reporter