South Korean Retail Investors Shift to High-Risk Assets Amid Housing Market Challenges

According to PANews, South Korean retail investors, often referred to as 'ants,' are increasingly turning to high-risk assets in pursuit of funds for home purchases. Over the past five years, the scale of margin trading has tripled, with retail investors holding up to 40% of positions in U.S.-based leveraged and inverse ETFs. Local exchanges report that altcoin transactions account for over 80% of trading activity. This shift comes in the wake of recent U.S.-China tariff tensions, which have negatively impacted the cryptocurrency market. Following the government's tightening of mortgage and rental regulations, approximately 4 trillion Korean won has flowed out of banks. Regulatory authorities have issued warnings about the risks associated with leverage and market volatility. The collapse of TerraUSD and LUNA previously resulted in significant personal financial losses, highlighting the potential dangers of such investments.