South Korea's leveraged retail trading market experiences mass liquidations, with over 500k accounts fully liquidated and KOSPI down 18% since mid-July.
Macro & Markets ·
South Korea's leveraged retail trading sector faced widespread deleveraging in mid-July, with more than 1.2 million accounts subject to margin calls as of July 13th, according to Goldman Sachs estimates. The wave triggered an estimated 320,000–360,000 full liquidations initially, with the total now believed to exceed 500,000 accounts. The margin call volume represents approximately 3.4% of the country's adult population, while the KOSPI has declined roughly 18% in the period following July 13th.