South Korea's Stock Market Faces a Margin Call Crisis, with the July Forced Liquidation Scale Reaching ₩344.2 billion

BlockBeats News, July 13th. According to data from the Korea Financial Investment Association, the recent sharp decline in the South Korean stock market has triggered a credit deleveraging spiral. The total forced liquidation amount in July has reached 344.2 billion Korean Won, with a single-day forced liquidation amount of 142.2 billion Korean Won on July 9th. Due to a two-day lag in the forced liquidation data, the liquidation pressure from KOSPI's nearly 9% plunge on July 13th has not been fully reflected yet, and the market expects that the subsequent liquidation amount may further increase.

On July 13th, the South Korean KOSPI index fell by 8.95%, triggering the seller-side circuit breaker pause mechanism (Sidecar) and a Level 1 circuit breaker. The semiconductor sector plummeted, with SK Hynix falling by 15.37%, marking its largest single-day drop in history, and Samsung Electronics dropping by 10.7%.

Meanwhile, the scale of individual investor margin loans, credit financing balances, and investor deposits in South Korea have been continuously decreasing, plunging the market into a deleveraging cycle of "stock price decline - forced liquidation - further decline."