Retail investors in their 20s and 30s suffered 62% of forced liquidations as margin calls surged across 1.2 million accounts.
South Korean retail traders lost approximately $1.45 billion in leveraged positions over the past month, driven by a sharp market downturn. Forced liquidations affected 1.2 million accounts, with younger investors bearing the brunt of the losses.
Investors aged 20 to 39 accounted for 62% of margin-call accounts, while brokerages fully liquidated between 320,000 and 460,000 positions. The Korea Financial Investment Association reported $451.9 billion in forced sales from unsettled trades in the first half of July.
The rout highlights the risks of high leverage amid volatile market conditions, particularly for inexperienced traders.