▲ The KOSPI and KOSDAQ closing prices are displayed at the Hana Bank dealing room in Jung-gu, Seoul, on June 29.
The amount of forced liquidations, where retail investors have their stocks sold off by brokerage firms due to unpaid debts, continues to remain at a high level.
According to the Korea Financial Investment Association on June 29, the amount of forced liquidations related to short-term margin trading, often referred to as "debt-financed investment," was recorded at 50.9 billion won on June 26.
This transaction involves funds borrowed from brokerage firms for two days, and the forced liquidation amount increased by 3.3 billion won from the previous trading day (47.6 billion won).
As a result, the daily amount of forced liquidations has exceeded 40 billion won for four consecutive days.
The total amount of forced sales for last week (June 22 – 26) reached 271.7 billion won, more than a fourfold increase from the 64.8 billion won recorded the previous week.
The KOSPI closed in the 9,100 range for the first time in history on June 22, but plunged 9.99% the following day, June 23.
Although the index rebounded by 3.26% and 5.42% on June 24 and 25, respectively, it experienced high volatility, including a 5.81% drop on June 26.
The balance of unpaid margin trades, which exceeded 2 trillion won on June 25 (2.0687 trillion won), decreased to 1.5632 trillion won on June 26.
The ratio of forced liquidations to unpaid margin trades stood at 2.5%, down 1 percentage point from 3.5% on the previous trading day.
The balance of credit loans, a key indicator of "debt-financed investment," was 37.7615 trillion won on June 26, showing a decline for two consecutive days from the previous day (38.0483 trillion won).
(Photo: Yonhap News)
※
Copying, redistribution, and unauthorized use in AI training are strictly prohibited.