TechFlow News, July 16, according to Bloomberg data cited by Hupzy, South Korean retail investors have accumulated losses of approximately $1.45 billion due to leveraged trading over the past month, with approximately 460,000 accounts forcibly liquidated by brokers, and another about 1.2 million leveraged accounts receiving margin calls. Data shows that investors aged 20 to 30 account for 62% of the liquidated accounts. The Korea Financial Investment Association disclosed that during the period from July 1 to July 13, the scale of forced sales reached 451.9 billion Korean won.
Market analysis suggests that this deleveraging event occurred in one of the most active retail markets globally, which may weaken risk appetite for high-risk assets and put pressure on the activity of cryptocurrency trading in South Korea. Against the backdrop of the Bank of Korea raising interest rates to 2.75%, the combination of policy tightening and leverage clearance may further compress the "Kimchi Premium" and drag down altcoin trading volumes on platforms such as Upbit and Bithumb.
