South Korea's five major banks have already used 85% of the annual household loan quota, while the stock market's leverage funds are facing a margin call.

BlockBeats News, July 13, according to South Korean media on July 12, South Korea's five major commercial banks have already used more than 85% of the annual household loan growth cap in the first half of this year, with two banks even surpassing the full-year limit. Against the backdrop of regulatory authorities setting strict total quantity control targets, banks are expected to have almost no new lending space in the second half of the year. The market is thus anticipating that the credit "cliff edge" will materialize in the second half of the year, and margin funds entering the market through loans may face significant contraction pressure.

The report pointed out that the two main engines driving the rapid growth in loans are the continuously surging demand for mortgage loans and credit loans used for direct market entry. Even though banks had tightened their lending pace at the beginning of the year, neither of these demands has shown a significant decline, ultimately leading to a continuous increase in loan balances in the first half of the year.

For investors relying on credit to leverage participation in the stock market, the available external financing channels in the second half of the year are facing a substantial narrowing.