When I saw the news about South Korea’s rescue measures this afternoon, I thought of what happened back then when Soros shorted Thailand and Hong Kong. The reason the short on Hong Kong failed is something everyone already knows without me having to say it. The reason the short on Thailand succeeded is just like the current South Korean stock market: the same small-sized “closed market,” the same poor liquidity, the same endless leverage on top of leverage…

South Korea’s Ministry of Economy and Finance, the Financial Services Commission, the Bank of Korea, and the Financial Supervisory Service have all fully stepped in to stabilize the market. So far, they have already required major asset management firms to submit整改方案 to reduce market volatility, tightening leverage across the board and clamping down on chaos in leverage practices. The core focus is the leveraged single-stock ETFs at the center of this bout of volatility.

As soon as the news broke, the stock markets of both China and South Korea surged at the same time…

South Korea’s stock market situation right now: 1.2 million accounts liquidated, 360 thousand forced liquidations. They absorbed all the sell orders from foreign investors, and retail investors’ deposits have fallen by 360k won.

In this round of market volatility, dozens of thousands of young people in South Korea have just gotten their first large debt in life.