Crypto Rover|Jul 18, 2026 16:26
🚨 SOUTH KOREA'S STOCK MARKET IS SITTING ON A $25 BILLION TIME BOMB.
Retail investors in South Korea have borrowed a record 38 trillion won ($25.2B) to buy stocks.
That's far above the previous peak of 24 trillion won during the 2021 market frenzy.
The problem is that investors are running out of cash to support those positions.
Brokerage deposits have fallen to 107.1 trillion won, while margin debt keeps rising.
That means more investors could be forced to sell if the market drops.
The pressure is already showing.
Over 1.2 million leveraged retail accounts have reportedly received margin calls, while forced liquidations have surged to 42.4 billion won in a single session.
Even leveraged ETFs are feeling the impact, with around $5 billion wiped from single-stock leveraged ETF assets.
Now, South Korea's Financial Supervisory Service has called emergency meetings with brokerages and started real-time monitoring of leveraged trading as risks continue to build.
The bigger the leverage, the faster the selling can spread.
If the market turns lower, this record debt could make the next sell-off much worse.(Crypto Rover)
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