Samsung Electronics and SK Hynix accumulated an estimated combined credit balance of approximately 12.5 trillion won, according to data from the Korea Financial Investment Association covering the period from May 27 to the 10th of this month. This figure represents 1.7 times the total credit balance of the entire KOSDAQ market during the same timeframe. The concentration occurred as credit restrictions tightened on volatile small-cap KOSDAQ stocks, causing funds to shift toward large-cap stocks with greater liquidity. KOSDAQ credit balances fell 23.4% during this period while KOSPI credit balances rose 4.4%.
Samsung Electronics and SK Hynix Hold 12.5 Trillion Won in Credit Balances
According to the Korea Financial Investment Association, KOSDAQ credit balances decreased from 9.86 trillion won on May 27 to 7.55 trillion won on the 10th of this month, a decline of 2.30 trillion won (23.4%). During the same period, KOSPI credit balances increased from 26.83 trillion won to 28.02 trillion won, a rise of 1.19 trillion won (4.4%).
Calculations based on market capitalization-to-credit ratios show Samsung Electronics holds an estimated credit balance of approximately 6.28 trillion won, while SK Hynix holds approximately 6.23 trillion won. The combined total of 12.51 trillion won exceeds the entire KOSDAQ credit balance by approximately 1.7 times as of the same date.
A securities firm official stated, "Strengthening credit standards for small and mid-cap stocks when volatility increases is a common risk management practice across the industry. However, in a sharp decline, when maturity extensions for existing borrowers are restricted simultaneously, new purchases are blocked while existing investors must sell to repay, creating a structure that increases supply pressure."
Securities Firms Cite Risk Management as Credit Restriction Driver
The securities industry explained the credit concentration as a result of risk management based on individual stock risk levels and liquidity. Large-cap stocks with abundant trading volume allow relatively easier collateral recovery, while small-cap stocks face higher risk of rapid collateral value deterioration during sharp declines, necessitating more conservative credit provisions.
A securities industry source stated, "Credit provision is determined by each securities firm considering individual stock risk, liquidity, and internal risk factors. However, during sharp declines, it is necessary to examine how existing borrower management methods and credit provision standards affect market supply and demand."
FAQ
What is the combined credit balance of Samsung Electronics and SK Hynix?
The estimated combined credit balance of Samsung Electronics and SK Hynix reached approximately 12.5 trillion won based on calculations using market capitalization-to-credit ratios, according to Korea Financial Investment Association data.
How did KOSDAQ and KOSPI credit balances change from May 27?
KOSDAQ credit balances fell from 9.86 trillion won on May 27 to 7.55 trillion won, a 23.4% decrease. KOSPI credit balances rose from 26.83 trillion won to 28.02 trillion won during the same period, a 4.4% increase.
