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South Korea estimates 320,000 retail accounts were liquidated in a month, with losses reaching about KRW 2.15 trillion

South Korea estimates 320,000 retail accounts were liquidated in a month, with losses reaching about KRW 2.15 trillion

N
News Editor
2026-07-16 08:29:43
South Korean retail investors lost an estimated KRW 2.15 trillion, or about $1.45 billion, from leveraged trading over the past month, based on combined estimates from Financial Supervisory Service data and a Goldman Sachs trading desk report cited by BlockBeats. The figure includes principal wiped out in forced liquidations, declines in leveraged ETF net asset value, debt created by margin calls, and losses on option premiums. On July 13 alone, more than 1.2 million personal credit trading and leveraged-product accounts received margin call notices. Of those, about 320,000 to 360,000 accounts were forcibly liquidated by brokerages and saw their principal fully erased. Goldman Sachs said those liquidations were a major part of institutional net selling that day. The report also said 62% of the liquidated accounts belonged to investors in their 20s and 30s, with trading concentrated in 2x leveraged semiconductor ETFs tied to names such as Samsung Electronics and SK Hynix. Separately, South Korean authorities said they will launch a nationwide debt counseling hotline, 1375, in October 2026 and have tightened rules on single-stock leveraged ETFs, including raising minimum margin requirements and banning new listings of such products.
South Korealeveraged tradingforced liquidationleveraged ETFspolicy regulationFinancial Services Commission

South Korean retail investors posted an estimated KRW 2.15 trillion in actual losses from leveraged trading over the past month, or about $1.45 billion, according to combined estimates based on Financial Supervisory Service data and a Goldman Sachs trading desk report cited by BlockBeats on July 16.

The estimate covers principal lost in forced liquidations, declines in leveraged ETF net asset value, debt created by margin calls, and losses tied to option premiums.

More than 1.2 million accounts received margin calls on July 13

On July 13 alone, more than 1.2 million personal credit trading and leveraged-product accounts received margin call notices in South Korea. About 320,000 to 360,000 of those accounts were forcibly liquidated by securities firms, wiping out their principal in full.

Goldman Sachs said the forced liquidations that day were a major component of institutional net selling.

Investors in their 20s and 30s made up 62% of liquidated accounts

Among the liquidated accounts, 62% belonged to young investors in their 20s and 30s. The positions were mainly concentrated in 2x leveraged semiconductor ETFs linked to Samsung Electronics and SK Hynix.

Debt counseling hotline 1375 to open in October 2026

Separately, South Korea’s Financial Services Commission said it will open a nationwide unified debt counseling hotline, 1375, starting in October 2026. The service will offer one-stop support for debt restructuring, personal bankruptcy consultations, and relief for victims of illegal private lending.

The measure was included in the government’s report to the National Assembly on suicide prevention measures for people facing economic crisis. It is intended to stop debt problems triggered by leveraged blowups from turning into a broader social crisis.

Regulator tightens rules on single-stock leveraged ETFs

South Korea’s Financial Services Commission also tightened oversight again on the same day, announcing new measures for single-stock leveraged ETFs and raising the minimum margin requirement for chip-related leveraged ETFs.

  • The minimum margin requirement was raised from KRW 10 million to KRW 30 million
  • Only cash will be accepted as collateral
  • Single-stock leveraged trades will be capped at 20 shares per purchase, compared with 1 share previously
  • South Korea will also ban the listing of new single-stock leveraged products
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