Korea’s stock market is facing a credit-pool crisis, and the forced liquidation volume in July has already reached 3442 billion won.

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Mars Finance news: On July 13, according to data from the Korea Financial Investment Association, a recent sharp drop in South Korea’s stock market has triggered accelerated deleveraging in margin calls. The total forced liquidation amount in July has reached 344.2 billion Korean won, including 142.2 billion Korean won for a single day on July 9. Due to a two-trading-day lag in the forced liquidation data, the settlement pressure caused by the nearly 9% plunge in the KOSPI on July 13 has not yet been fully reflected, and the market expects the forced liquidation amount to rise further. On July 13, the South Korean KOSPI index closed down 8.95%; during the session, the sell-side order pause mechanism (Sidecar) and the primary circuit breaker mechanism (Circuit Breaker) were triggered. The semiconductor sector was hit hard, with SK hynix down 15.37%, posting the largest single-day decline in its history, and Samsung Electronics down 10.7%. Meanwhile, South Korea’s individual investors’ margin balances, credit financing balances, and investor deposits have continued to decline, and the market is falling into a deleveraging cycle of “stock prices falling—forced liquidation—further falling.”
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