South Korea Stock Forced Liquidations Hit 59.6 Billion Won in Two Consecutive Days as Leverage Risks Rise

According to The Economist, forced liquidations of leveraged stock trades hit 59.6 billion won on July 21, 2026, marking the second consecutive day exceeding 50 billion won. On July 20, liquidations reached 52.8 billion won. From July 1-21, cumulative forced liquidations reached 630.9 billion won, averaging 42.1 billion won per trading day.

The forced liquidation ratio climbed to 5.7% on July 21, up from 4.6% the previous day, indicating rising risks despite overall margin debt declining to an average of 1.16 trillion won daily in July from 1.43 trillion won in June. The ratio has climbed for three consecutive months—from 1.13% in April to 2.63% in May, 3.52% in June, and 3.61% in July—raising concerns about potential cascading forced sales if market volatility intensifies further.