According to ME News, as of July 16 (UTC+8), combining data from the Financial Supervisory Service of Korea and Goldman Sachs’ trading desk reports, South Korean retail investors incurred an estimated total actual loss of approximately KRW 2.15 trillion (about USD 1.45 billion) over the past month from leveraged trading, including losses from forced liquidations, declines in the net asset value of leveraged ETFs, margin call-induced debts, and option premium losses. On July 13 alone, over 1.2 million accounts engaged in credit trading and leveraged products received margin calls, with approximately 320,000 to 360,000 accounts forcibly liquidated and fully depleted of principal by securities firms. Goldman Sachs noted that these forced liquidations constituted a significant component of institutional net selling that day. Among the age distribution of liquidated accounts, individuals aged 20 to 30 accounted for a high 62%, primarily concentrated in 2x leveraged ETFs tracking semiconductor giants such as Samsung Electronics and SK Hynix. Meanwhile, the Financial Services Commission of Korea has announced the launch of a nationwide unified debt counseling hotline, 1375, starting October 2026, offering integrated services including debt restructuring, personal bankruptcy counseling, and relief for victims of illegal private lending. This initiative is included in the government’s report to the National Assembly on “Measures to Prevent Suicide Among Those in Economic Crisis,” aimed at preventing leveraged trading-related debt issues from escalating into broader social crises. Today, the Korean Financial Services Commission further tightened regulations, announcing new restrictions on single-stock leveraged ETFs, including raising the minimum margin requirement for semiconductor leveraged ETFs. The minimum margin has been increased from KRW 10 million to KRW 30 million, with cash only accepted as collateral; single-stock leveraged trading is now limited to a maximum of 20 shares per transaction (previously 1 share). South Korea will also prohibit the listing of new single-stock leveraged products. (Source: BlockBeats)
South Korea liquidated 320,000 retail leverage accounts in one month, with 62% of users aged 20–30.
KuCoinFlashShare
Summary
Leverage trading in South Korea led to the liquidation of 320,000 retail accounts in one month, according to MetaEra. Retail investors lost 2.15 trillion KRW ($14.5 billion) due to forced liquidations, leveraged ETF losses, and margin calls. On July 13 alone, 1.2 million accounts received margin call notices, with 320,000 to 360,000 fully liquidated. The majority (62%) were aged 20–30 and focused on 2x leveraged ETFs of Samsung Electronics and SK Hynix. In response, the Financial Services Commission raised the minimum margin requirement for single-stock leveraged ETFs to 10 million KRW, limited purchases to 20 shares per transaction, and banned new products. Value investing in crypto remains a safer alternative as regulators tighten leverage rules.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.