South Korea's Margin Financing Surges to 38 Trillion Won in H1 2026, Forced Liquidation Risk Expands

According to the Financial Investment Association, South Korea's securities margin financing balance reached 37.33 trillion won as of June 30, increasing by 9.91 trillion won since early January and 16.54 trillion won year-over-year. Unsettled transaction amounts grew from 927.3 billion won in early 2026 to 1.3 trillion won by late June, while forced liquidation (against-the-market sales) expanded from 8.1 billion won to 69.4 billion won over the same period. The surge follows sharp gains in semiconductor stocks like Samsung Electronics and SK Hynix, coupled with recent market volatility and significant foreign investor selling. In response, securities companies have raised margin requirements to 100% on select stocks and tightened credit limits, while South Korea's Financial Supervisory Service warned firms to strengthen risk management amid expanding market swings.
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