South Korea Regulator Launches Real Time Monitoring of Stock Leverage as Retail Margin Debt Hits Record $25.2 Billion
South Korea’s Financial Supervisory Service has initiated real time monitoring of leveraged trading in the stock market, calling emergency meetings with brokerages to address surging retail borrowing. Investors have accrued a record 38 trillion won ($25.2 billion) in margin debt, a figure that has more than doubled since the start of the year.
The regulatory action follows a sharp contraction in single-stock leveraged exchange-traded funds, with assets in the products dropping $5 billion to approximately $6 billion in less than three weeks. Market pressure is already visible, as brokerage deposits have fallen to 107.1 trillion won while over 1.2 million retail accounts reportedly received margin calls. Regulators are weighing further controls after the leveraged products and their underlying shares accounted for more than 70% of daily trading volume earlier this month.
From the sources (19 posts)
@macroedgeresKOSPI Plunges 5%, Triggers Sell-Side Sidecar on Korea Exchange #MacroEdge
@firstsquawkSouth Korea Regulator to Introduce New Measures for Single-Stock Leveraged ETFs Shortly
@macroedgeresKorea’s flagship KOSPI index halted after index plummets 7% #MacroEdge
@globalmktobserv‼️Foreign investors are precipitously selling Korean equities: Global investors have dumped nearly -$10 BILLION in Korean stocks so far in July. TAP IMAGE TO SEE FULL INSIGHT👇
@polymarketJUST IN: South Korea prepares new measures for single-stock leveraged ETFs, calling them “high-risk” products.
@globalmktobserv🚨SOUTH KOREA BEAR MARKET SHOWS NO SIGNS OF EASING: The KOSPI dropped as much as -7.6% intraday Thursday before paring losses to close down -6.4%, with Samsung falling -8.2% and SK Hynix plunging -11.6%. The KOSPI also triggered another ci
@firstsquawkSOUTH KOREA TO TEMPORARILY HALT NEW SINGLE STOCK LEVERAGED ETFS
@firstsquawkS. KOREA FSC: TO CONSIDER ADDITIONAL STEPS BASED ON MARKET IMPACT
@financialjuiceSouth Korea FSC official: to increase minimum deposit for buying single-stock leveraged ETFs to 30m won for domestic and foreign-listed products
@globalmktobserv‼️SOUTH KOREAN RETAIL INVESTORS' MARGIN DEBT IS HITTING RECORD LEVELS: Loans on margin account balances are up to a record ~38 trillion won, or ~$25.2 billion, doubling since the start of 2025. TAP IMAGE TO SEE FULL INSIGHT👇
@globalmktobserv🔴SOUTH KOREA MARKET IS TRADING AS IF THERE IS A FINANCIAL CRISIS: The 30-day KOSPI index volatility spiked to 82 points, an all-time high. Over the last several weeks, the gauge has doubled and exceeded the Great Financial Crisis peak of
@globalmktobserv‼️Foreign investors are precipitously selling Korean equities: Global investors have dumped nearly -$10 BILLION in Korean stocks so far in July. TAP IMAGE TO SEE FULL INSIGHT👇
@globalmktobserv🚨South Korea leveraged ETF BUBBLE is BURSTING: Korea's single-stock leveraged ETFs' assets under management have nearly halved by -$5 billion to ~$6 billion, erasing almost all gains since their launch in May. TAP IMAGE TO SEE FULL INSIGH
@globalmktobservRT @GlobalMktObserv: 🔴SOUTH KOREA MARKET IS TRADING AS IF THERE IS A FINANCIAL CRISIS: The 30-day KOSPI index volatility spiked to 82 poin…
@globalmktobservRT @GlobalMktObserv: 🚨SOUTH KOREA BEAR MARKET SHOWS NO SIGNS OF EASING: The KOSPI dropped as much as -7.6% intraday Thursday before paring…
@kalshiJUST IN: 1.2 million Koreans have been hit with "margin calls" this past week
@cryptorover🚨 SOUTH KOREA'S STOCK MARKET IS SITTING ON A $25 BILLION TIME BOMB. Retail investors in South Korea have borrowed a record 38 trillion won ($25.2B) to buy stocks. That's far above the previous peak of 24 trillion won during the 2021 marke
@globalmktobserv‼️SOUTH KOREAN RETAIL INVESTORS' MARGIN DEBT IS HITTING RECORD LEVELS: Loans on margin account balances are up to a record ~38 trillion won, or ~$25.2 billion, doubling since the start of 2025. TAP IMAGE TO SEE FULL INSIGHT👇
@globalmktobserv🚨South Korea leveraged ETF BUBBLE is BURSTING: Korea's single-stock leveraged ETFs' assets under management have nearly halved by -$5 billion to ~$6 billion, erasing almost all gains since their launch in May. TAP IMAGE TO SEE FULL INSIGH