Huo Xing Finance reports that on July 22, South Korean retail investors are once again aggressively buying high-leverage CFDs. According to data from the Korea Financial Investment Association, as of July 21, the total open interest in South Korean CFDs had risen to approximately KRW 3.3 trillion (about USD 2.2 billion), an increase of nearly two-thirds compared to a year ago. Data shows that SK Hynix and Samsung Electronics have become the most concentrated targets for retail leverage bets. Over the past year, CFD open interest in SK Hynix surged nearly 2,500% to KRW 235 billion, while CFD positions in Samsung Electronics expanded to approximately KRW 217 billion—five times the previous level. CFDs allow investors to gain full exposure to underlying assets by posting only about 40% margin, without actually holding the underlying shares. Analysts note that when market declines trigger margin calls, banks hedging their risk by holding spot shares may simultaneously sell those shares, amplifying market volatility. Market participants are concerned that the risks from CFDs, when combined with other leveraged products such as margin trading and leveraged ETFs, could trigger a cascade of forced liquidations during market corrections. The Korea Capital Market Institute warned that if a large volume of leveraged positions are concentrated in the same direction and investors cannot meet margin requirements, forced liquidations could further intensify market volatility. In 2023, South Korea experienced a wave of retail CFD liquidations that caused multiple stocks to hit consecutive daily trading limits, prompting regulatory intervention. Analysts believe that as South Korean retail investors once again ramp up high-leverage trading, similar risks are once again drawing market attention.
South Korean retail investors increase high-leverage CFD positions to 33 trillion won
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Summary
South Korean retail investors are increasing their leverage trading in high-leverage CFDs, pushing total positions to 33 trillion won by July 21, 2026, a 67% year-over-year increase. SK Hynix and Samsung Electronics lead the list, with CFD positions rising nearly 2,500% and fivefold, respectively. Analysts warn that combining leverage trading with margin and leveraged ETFs could amplify volatility, particularly if the risk-to-reward ratio becomes unfavorable during market downturns.
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