South Korea's equity markets, after weeks of historic turbulence that erased billions in retail savings and triggered circuit breakers at a record pace, are beginning to find their footing. The forced unwinding of leveraged positions — accelerated by tighter regulatory requirements — has passed its most destructive phase, though the wounds left on ordinary investors remain fresh. What emerges now is a market caught between the scars of panic and the quiet arithmetic of deep undervaluation, where fear and opportunity occupy the same uneasy ground.
South Korea's stock turmoil eases as leveraged trades unwind, deleveraging halfway done
Approximately $1.7 billion in retail investor accounts were subject to forced liquidations across June and July due to leveraged trading losses.