South Korea Stocks Bleed as Margin Liquidations Peak

South Korea stocks plunge as margin calls add to market stress

South Korea’s KOSPI has recorded a sharp market decline after emergency circuit breakers halted trading twice in one week. The benchmark index fell 13% across eight trading days as margin calls and hedging demand rose. The selloff has also hit…

South Korea Stocks Bleed as Margin Liquidations Peak

TLDR: South Korea’s KOSPI fell 13% in eight days, with two full circuit breakers triggered in a single week. The KOSPI 200 put-call ratio hit 2.5, its highest in five years, signaling heavy institutional hedging. Forced margin liquidations surged to a record 300 billion won, exposing millions of retail investors. Samsung and SK Hynix represent over 50% of KOSPI weighting, concentrating systemic risk in two stocks. South Korea’s KOSPI index has …