South Korean stocks plummeted sharply, triggering margin call pressure, with total reverse transaction volumes reaching approximately 36.9 billion won over Monday and Tuesday.

After a sharp plunge in South Korea’s stock market, pressure from leveraged funds has begun to surface. Data from the Korea Financial Investment Association (KOFIA) shows that as of the latest disclosure on July 28, South Korean stock market “reverse trading” figures cover this Monday and Tuesday (July 27 and 28). Specifically, the actual reverse trading volume hit 22.961 billion won on July 27 and 13.89 billion won on July 28, totaling roughly 36.851 billion won over the two days. Reverse trading typically refers to the forced sale of related stocks by securities firms when investors fail to top up settlement funds or margin on schedule, and is widely viewed in the market as an indicator of liquidation pressure. Meanwhile, the scale of unsettled funds in South Korea’s stock market has continued to rise: unsettled funds for order transactions stood at 1.078 trillion won on July 27, climbing to 1.224 trillion won on July 28, signaling that investors’ funding chain pressure is still building after the market’s sharp decline.