PremiumFollowing regulatory directives, Korean banks are clamping down hard: having first done so with mortgages to curb rising home prices,major Korean banks are now strictly capping credit loans and overdrafts following criticism that the rise in stock prices was spreading debt-fueled investment, and investing with borrowed money. In other words, bank issued margin loans.The measures stem from a growing need to manage "debt-fueled investing" or borrowing money to invest in stocks, which of course explains this: the biggest emerging market bubble ever seen:
Goldman Urges Clients To Hedge For Kospi Drawdown, As Korea's Banks Cap Loans To Curb Stock Market Frenzy
Korean regulators and banks are cracking down on local borrowers who are using overdraft loans (similar to using a credit card) to buy stocks... and Goldman is starting to be worried that the music is about to end.
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