Svmuu News: According to foreign media reports, Lee Seung-ho, a 24-year-old South Korean college student, used 5x leverage to turn 20 million won into 300 million won (approximately $202,500)—a 15-fold return—but his profits vanished in just four weeks. The pressure was so intense that he admitted, “I literally couldn’t breathe.” For many young South Koreans, the allure of leverage stems from a reality even harsher than what they see on their trading screens.
Data shows that the average South Korean worker would need 14 years’ worth of full salary to purchase a home in Seoul. With young graduates struggling to accumulate wealth through traditional means, high-leverage stock trading apps have become their only tool for economic equality. Last Thursday, the South Korean government announced a ban on the launch of new leveraged exchange-traded funds (ETFs) linked to individual stocks. For retail investors holding these products, the risks are asymmetric: in such a volatile market environment, leverage causes losses to mount much faster during downturns than gains do during upturns. Lee Seung-ho says he understands these risks but remains convinced that leverage is the best way forward. (Jin Shi)