Forced Liquidations Hit 142.2B Won in South Korea on July 9, Up 5 Times Since Leverage ETF Launch

According to the Financial Investment Association, forced liquidations in South Korea surged to 142.2 billion Korean won on July 9, the fourth-largest single-day total on record. Of the six instances exceeding 100 billion won this year, five occurred after Samsung Electronics and SK Hynix single-stock leverage ETFs launched on May 27. Analysts attribute the spike to overlapping leverage ETF rebalancing and margin call pressures during volatile semiconductor trading. The SK Hynix leverage ETF now holds positions 4 times the underlying stock's daily trading volume, creating structural liquidity concerns when volatility spikes.
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