South Korean Stock Market Faces a “Bloody July”: 1.2 Million Investors Hit Margin Call Thresholds, Over 300,000 Accounts Suffered Margin Calls, Margin Call Rate Among Adults Reached 1 in 30, and Retail Investors’ Margin Balances Evaporated by Nearly 30 Trillion Won in Less Than Half a Month

Svmuu News: According to data from the Financial Supervisory Service of South Korea, as of July 13, a cumulative total of more than 1.2 million leveraged retail investor accounts across the South Korean market had reached the margin call threshold, with approximately 320,000 to 360,000 of those accounts subject to full forced liquidation by brokerage firms. When viewed in the context of South Korea’s population, this figure means that one in every 30 adults (approximately 3.4%) faces the risk of a margin call. Total losses from leveraged trading are estimated at approximately 2.15 trillion won (about $1.44 billion).
Since July, the cumulative value of forced liquidations in South Korea has reached 344.2 billion won, with 142.2 billion won in forced liquidations occurring on July 9 alone—a nearly fivefold surge from the previous day’s 28.8 billion won. Retail investors’ margin deposit balances have evaporated by nearly 30 trillion won compared to the end of June, falling to 107.1 trillion won—the lowest level since June 2020. (Wall Street Journal)