South Korea Sees Over 1.2 Million Margin Calls as KOSPI Drops 18%
More than 1.2 million leveraged retail trading accounts in South Korea received margin calls as of July 13, with 320,000–360,000 fully liquidated, according to Goldman Sachs. Since then, the KOSPI has fallen another 18%, likely pushing total liquidations above 500,000 accounts.
According to Goldman Sachs, more than 1.2 million leveraged retail trading accounts in South Korea received margin calls as of July 13. Of those, an estimated 320,000–360,000 accounts were fully liquidated, equivalent to roughly 3.4% of the country’s adult population.
Since that date, the KOSPI index has fallen by another ~18%, deepening the stress on leveraged positions. As a result, the total number of fully liquidated accounts is now believed to have exceeded 500,000.
Source: The Kobeissi Letter