BlockBeats News, July 13th, According to South Korean media on July 12th, the five major commercial banks in South Korea have already used over 85% of the annual household loan growth limit in the first half of this year, with two banks even surpassing the full-year limit. Against the backdrop of regulatory authorities setting strict total quantity control targets, banks have almost no new lending space in the second half of the year. The market is thus speculating that the credit "cliff" will come true in the second half of the year, and stock market leverage funds entering the market through loans may face significant contraction pressure.

The report pointed out that the two major engines driving the rapid growth of loans are the continuously surging demand for housing mortgage loans and credit loans used for direct market entry. Even though banks had tightened their lending pace at the beginning of the year, neither type of demand has shown a significant decline, ultimately leading to a continuous increase in loan balances in the first half of the year.

For investors relying on credit to leverage participation in the stock market, the available external financing channels in the second half of the year are facing a substantial narrowing.