To help fund investors' "debt-based investment," securities firms have sharply increased short-term financing. Small investors, known as "ants," have been actively investing in the stock market using loans, known as "debt-based investment," amid low interest rates and the bull run in the market. Securities firms have been increasingly providing loans to small investors. Financial investment industry insiders say that securities firms have issued short-term bonds to provide funds for the loans. In the first half of this year, the amount of short-term bonds issued by securities firms reached 7.36 trillion won ($6.2 billion), up 40.6 percent from 5.24 trillion won in the second half of last year. In the first half of the year, the top five securities firms - NH Naver, Samsung, Hana, KB, and Shinhan - accounted for 52 percent of the total short-term bond issuance. Industry insiders say that the issuance of short-term bonds by securities firms is expected to continue. The Financial Services Commission, the financial regulator, said that it would continue to monitor the trend of short-term bond issuance by securities firms.
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