KOSPI Plunge Triggers Margin Call Pressure, Totaling Approximately 36.9 Billion Korean Won in Short Selling on Monday and Tuesday

July 30th: After a sharp drop in the South Korean stock market, leverage fund pressure began to surface. Data from the Korea Financial Investment Association shows that as of the latest disclosure on July 28th, South Korea's "short selling" data has covered the trading days of Monday and Tuesday this week. The actual short selling amount on July 27th was 22.961 billion Korean won, and on July 28th, it was 13.890 billion Korean won, with a total of approximately 36.851 billion Korean won over the two days.

Short selling usually refers to a broker's forced sell-off of relevant stocks when an investor fails to timely supplement settlement funds or margin. The market often views this as an observation point for "forced liquidation" pressure. Meanwhile, the scale of uncollected funds in the South Korean stock market continued to rise. Outstanding buy orders on July 27th amounted to 10.78 trillion Korean won, increasing to 12.24 trillion Korean won on July 28th, indicating that after a rapid market decline, investor fund chain pressures are still accumulating.