Korean stocks face a "Bloody July": 1.2 million accounts hit margin calls, over 300,000 positions liquidated, adult liquidation rate reaches 1 in 30, retail margin evaporates nearly 30 trillion won in half a month

According to data from the Financial Supervisory Service, as of July 13, over 1.2 million leveraged retail accounts across the Korean market had hit margin call levels. Of these, approximately 320,000 to 360,000 accounts were fully forcibly liquidated by securities firms. Within the context of South Korea's population, this figure means that roughly 1 in every 30 adults (approximately 3.4%) faces the risk of liquidation. The estimated total losses from leveraged positions stand at approximately 2.15 trillion won (around $1.44 billion).

Since July, the cumulative forced liquidation volume for the month has reached 344.2 billion won, with a single day on July 9 seeing liquidations totaling 142.2 billion won — a nearly fivefold increase from the previous day's 28.8 billion won. The balance of retail margin deposits has evaporated by nearly 30 trillion won compared to the end of June, falling to 107.1 trillion won — the lowest level since June 2020. (Source: Wall Street CN)