律动BlockBeats|Jun 28, 2026 16:01
[South Korean Investors' Margin Trading Amount Hits Record High, Record Leverage Intensifies Volatility in Korean Stocks]
BlockBeats reports that on June 28, the amount of margin trading by South Korean investors reached a historic high: South Korea's margin loans have hit a record of approximately $26 billion, doubling since early 2025. However, in terms of the proportion of South Korea's free-float market capitalization, margin loans currently account for only about 0.8%, the lowest level since the pandemic low in 2020. This is because the significant rise in the total market capitalization of South Korean stocks has far outpaced the growth rate of leverage.
At the same time, during the recent market correction, the daily forced liquidation ratio surged to 4-5% of the total outstanding margin loans, far higher than the usual level of around 1%. This indicates that due to margin investors' inability to meet margin call requirements, brokers were forced to liquidate 4-5% of all margin positions in a single day. Record leverage is intensifying the volatility in South Korea's market. [Original Link]
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