South Korea’s stock market sell-off is feeding a sharper margin unwind, with forced liquidations in July reaching 344.2 billion won, according to data cited by the Korea Financial Investment Association. The figure includes 142.2 billion won recorded on July 9 alone. Because forced liquidation data is reported with a two-trading-day lag, the pressure tied to the July 13 plunge in the KOSPI has not yet been fully captured.
On July 13, the KOSPI closed down 8.95% and triggered both the Sidecar program trading halt and a level-one Circuit Breaker during the session. Chip stocks led the decline, with SK Hynix falling 15.37% for its largest single-day drop on record, while Samsung Electronics lost 10.7%.
At the same time, margin balances held by retail investors, credit loan balances and investor deposits have all continued to fall. The report described the market as being caught in a deleveraging loop of falling share prices, forced selling and additional declines.
South Korea’s stock market slump has accelerated margin deleveraging, with forced liquidations in July reaching 344.2 billion won, according to data from the Korea Financial Investment Association cited by BlockBeats on July 13. The total includes 142.2 billion won in forced liquidations on July 9 alone.
Forced liquidation data is published with a two-trading-day lag, meaning the liquidation pressure created by the KOSPI’s nearly 9% drop on July 13 has not yet been fully reflected. The market expects liquidation totals to climb further.
KOSPI triggers market safeguards
On July 13, South Korea’s KOSPI closed down 8.95%. During the session, the market triggered both the Sidecar program trading halt and a level-one Circuit Breaker.
Semiconductor stocks were hit hard. SK Hynix fell 15.37%, marking its biggest one-day drop on record, while Samsung Electronics lost 10.7%.
Retail funding indicators keep falling
At the same time, retail investor margin balances, credit financing balances and investor deposits all continued to decline. The market is now caught in a deleveraging cycle described as falling share prices, forced liquidations and further declines.
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