South Korea Margin Call Forced Liquidations Surge 596% in June, Hit 393.5 Billion Won

According to data from South Korea's top 10 securities firms released by lawmaker Kim Sang-hun on July 28, forced liquidations of margin-financed stock positions surged to 393.5 billion won in June from 56.5 billion won in January, a 596% increase. This marked the highest monthly level of the year, driven by heightened market volatility despite the benchmark Kospi remaining flat.

The number of liquidated accounts also jumped sharply, reaching 21,615 in June compared to 14,670 in May, a 47% increase. Average liquidation size per account nearly doubled to 18.2 million won in June from 9.32 million won in May, signaling both more investors were forced into liquidation and individual losses deepened. Investors aged 50 and above accounted for approximately 80% of total forced liquidations, while those aged 70 and older saw the steepest increase of 791% compared to January.