Share pledge (stock-backed loan)

Borrowing money by pledging shares as collateral.
Also known as: 주식담보대출, pledged shares

What it is

A shareholder pledges shares to a lender in exchange for a loan. When a largest or 5%+ shareholder of a Korean listed company signs, extends or changes such an agreement, the details and the number of pledged shares appear in the ownership report.

Margin call risk

If the pledged shares fall below the required collateral ratio, the lender can demand more collateral or sell the shares. Sales of a major holder's stake can weigh on the share price and affect control of the company.

What to keep in mind

Check what portion of the holding is pledged, the loan period and the collateral maintenance ratio, and whether the filing reports a new loan or simply an extension.

This explanation is general information, not investment advice. Rules reflect September 2026 and may change; check official exchange and broker notices.