BlockBeats report: On July 13, according to data from the Korea Financial Investment Association, the recent sharp decline in the Korean stock market has accelerated deleveraging in margin trading, with cumulative forced liquidations reaching KRW 344.2 billion in July, including a single-day forced liquidation volume of KRW 142.2 billion on July 9. Due to a two-trading-day lag in forced liquidation data, the liquidation pressure caused by the KOSPI's nearly 9% plunge on July 13 has not yet been fully reflected; the market expects subsequent liquidation volumes to rise further.
On July 13, South Korea’s KOSPI index closed down 8.95%, triggering both the sell-side program order suspension mechanism (Sidecar) and the Level 1 circuit breaker. The semiconductor sector plunged sharply, with SK Hynix falling 15.37%—its largest single-day decline on record—and Samsung Electronics dropping 10.7%.
Meanwhile, margin balances, credit financing outstanding, and investor deposits among individual investors in South Korea have continued to decline, as the market falls into a deleveraging cycle of "falling stock prices—forced liquidations—further declines."