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With South Korea’s stock market riding high on optimism surrounding the new administration, margin loans—often referred to as "debt investment" or bit-too in Korean—have surged to their highest level in three years, surpassing 20 trillion won. Retail investors, betting on continued market gains, have significantly increased borrowing to invest—most notably in Samsung Electronics.

According to the Korea Financial Investment Association on July 3, margin loans reached 20.88 trillion won as of July 2, the highest since June 2022. Just a month earlier, the figure had stood at around 18 trillion won, indicating an increase of over 2 trillion won in 30 days.

The recent surge in credit-based investment is closely tied to the KOSPI index’s sharp rise, which broke past the 3,100 mark in late June for the first time in three and a half years. This momentum was largely driven by expectations for capital market reform under President Lee Jae-myung’s administration.

Among all stocks, Samsung Electronics saw the largest inflow of borrowed funds. Data from Koscom terminals showed that as of July 2, the margin loan balance for Samsung Electronics stood at 847.7 billion won—by far the highest of any listed company.

Analysts believe investors are betting on the stock's rebound, as its recent performance has lagged behind other major players despite broader market gains. From June 2 to July 3, Samsung shares rose 13.5%, trailing the 15.5% gain of the KOSPI index and significantly underperforming peer SK hynix, which surged 36.2% over the same period.

Experts project Samsung’s earnings will improve in the second half of the year, boosting its stock. The average target price set by securities firms currently stands at 75,080 won. KB Securities analyst Kim Dong-won stated, “With Q2 earnings likely hitting bottom and improvement expected in the second half, we anticipate stronger valuation support and a clearer downside floor for the stock. Concerns that previously weighed on the share price are also expected to ease.”

Meanwhile, NAVER and Kakao also ranked among the top stocks in terms of margin debt, with balances of 538.7 billion won and 355.1 billion won, respectively. Their surge is attributed to government support for AI development and their inclusion in stablecoin-related stocks—factors investors expect to continue driving gains.