South Korea's household borrowing jumped to KRW6.9tn in May 2026, the fastest monthly increase since August 2024, driven by lower borrowing costs and a stock market rally. Much of the lending came from personal credit lines and overdraft accounts, with many individuals borrowing to invest in leveraged ETFs amid a fear of missing out. The country's household debt-to-income ratio stands at 174%, and younger borrowers in their 20s and 30s face debt service ratios of 40–50%, leaving limited room for consumption. A recent rise in delinquent loans of $130.3m signals emerging financial stress, while 44% of borrowers missed or fell behind on payments in the past six months, according to GlobalData. Regulators may need to strengthen safeguards as leveraged investing amplifies downside risks during market volatility.