The South Korean stock market is seeing an unusually sharp rally following the launch of the new administration, leading to a significant surge in margin trading, where investors borrow funds from securities firms to purchase stocks.

According to market information provider Koscom CHECK on Tuesday, Doosan Enerbility Co. recorded the largest increase in margin loan balances from June 4, 2025, the day after the presidential election, until Monday.

During this period, Doosan Enerbility’s stock price rose by 67.52 percent, and its margin balance jumped 23.3 percent, or 129.6 billion won ($95.4 million).

Naver Corp. and Kakao Corp., which have been among the major beneficiaries under the new government, also saw a sharp increase in margin trading.

Kakao’s stock price rose by 56.66 percent during the cited period, with its margin balance increasing by 41.4 percent.

Naver’s margin balance grew similarly by 38.6 percent.

These stocks have experienced rapid gains recently, attracting more investors seeking additional upside.

Doosan Enerbility has gained popularity as a nuclear power-related stock amid rising global electricity demand driven by the expansion of artificial intelligence (AI).

Naver and Kakao shares have surged on expectations that figures associated with the companies could be appointed as presidential aides or that the companies could benefit from the new administration’s policies related to regional currencies.

However, analysts noted that a sudden reversal in stock prices could lead to a drop in collateral ratios and trigger forced selling by securities firms to recover borrowed funds, resulting in margin calls. They advised investors to exercise caution.

According to the Korea Financial Investment Association, margin calls on Friday reached 11.2 billion won, marking the highest daily figure since April.

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