[South Korean College Student Sees 15x Returns with 5x Leverage Stock Trading, Only to Lose It All After Market Correction] BlockBeats News, July 21, according to Reuters, 24-year-old South Korean college student Lee Seung-ho used a trading app with 5x leverage to grow his 20 million won savings, accumulated during his military service, to nearly 300 million won—approximately 15 times his initial capital. However, after significant volatility in the South Korean stock market this May, his brokerage triggered a series of forced liquidations, wiping out all his gains within four weeks, and his account balance eventually fell below his initial investment. Lee stated that the pressure at the time made him feel like he "really couldn't breathe," but he still plans to resume margin trading after rebuilding his capital. Lee said his goal is to purchase a home in Seoul. The average price of an apartment in Seoul is equivalent to about 14 years of wages, leading some young South Koreans to believe that traditional wealth accumulation paths are no longer feasible. As a result, they view high-leverage stock trading as a way to catch up with rising asset prices. He noted that when stocks rise, 5x leverage can accelerate wealth growth fivefold, but he also acknowledged that consistently going all-in will ultimately lead to losses. According to data from the Korea Financial Investment Association, the balance of margin loans in the South Korean stock market rose to a record 38.63 trillion won as of June 24 and remained at 34.37 trillion won as of July 15. Broader statistics from the Bank of Korea show that total investor debt, including other forms of borrowing, exceeded 60 trillion won for the first time at the end of May. During the same period, the KOSPI index more than doubled within six months but experienced multiple declines of over 10% in the following weeks. South Korean regulators have announced a suspension on the listing of new leveraged ETFs tied to single stocks, despite such products being approved for launch only about two months ago. Exness strategist Inki Cho stated that this is a policy correction by regulators following their earlier hasty approval of such products. In highly volatile markets, the speed at which leveraged products amplify losses on the downside can far outpace their ability to generate wealth on the upside. [Original Link]