Svmuu News: According to data from the Korea Financial Investment Association, driven by a sharp decline in the stock market, margin positions on the exchange have seen concentrated deleveraging. The cumulative value of forced liquidations in July has reached 344.2 billion won, with the single-day liquidation volume on July 9 alone totaling 142.2 billion won. Since forced liquidation data is reported with a two-trading-day delay, the liquidation pressure caused by the KOSPI’s sharp plunge on the 13th has not yet been fully reflected in the statistics, and the market anticipates that the scale of subsequent liquidations will rise further.
On July 13, the South Korean stock market experienced severe volatility, with the KOSPI closing down 8.95% after repeatedly triggering the Sidecar seller suspension mechanism and the Level 1 circuit breaker during the session; The semiconductor sector led the decline, with SK Hynix falling 15.37%—marking its largest single-day drop on record—and Samsung Electronics closing down 10.7%. Currently, margin and margin loan balances held by South Korean retail investors continue to shrink, and the market is mired in a negative deleveraging cycle of “falling stock prices → forced liquidations → further declines in stock prices.” (Wall Street Journal)