South Korean retail investors are increasingly turning to high-leverage and high-risk assets to fund home purchases, as reported by Bloomberg. Margin trading in the country has tripled over the past five years, with retail investors now holding up to 40% of US-based leveraged and inverse ETFs. Altcoins dominate local exchanges, accounting for over 80% of trading volume.
This shift comes amid tightened mortgage and rental regulations, which have led to nearly 4 trillion won (approximately US$400 billion) flowing out of banks. Regulators have issued warnings about the risks associated with leverage and market volatility, especially following the TerraUSD/LUNA crash that resulted in significant personal financial losses.
South Korean Investors Turn to High-Risk Assets Amid Housing Fund Pressure
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