BlockBeats News, July 17th. The correction in the South Korean stock market deepened significantly this month. Based on the main stock index KOSPI, as of the close on July 16th, the index was at 6820.60 points, a cumulative drop of about 19.5% from the close of 8476.48 points on June 30th; compared to the mid-June high, the decline has exceeded 20%.

Chip heavyweight stocks have become the core drag in this round of decline. On July 16th, Samsung Electronics closed at 255,000 Korean won, a cumulative drop of about 31.9% from its previous high; SK Hynix closed at 1,842,000 Korean won, down about 38.3% from its previous high.

Under the rapid stock price decline, the passive liquidation pressure of leveraged trading by South Korean retail investors has also begun to show. Data from the Korea Financial Investment Association FreeSIS shows that based on the "actual reverse trading amount corresponding to unpaid receivables," from July 1st to July 15th, the total actual reverse trading amount of South Korean securities companies (i.e., forced liquidation amount) was approximately 512.087 billion Korean won.

The most intense pressure occurred on July 9th and July 10th. On July 9th, the daily actual reverse trading amount reached approximately 142.197 billion Korean won, accounting for 10.2% of the unpaid receivables; on July 10th, it was still about 81.613 billion Korean won. The total for the two days was approximately 223.8 billion Korean won, accounting for about 44% of the data published so far in July.

In terms of magnitude, this round of pressure is significantly higher than the recent norm. From July 6th to 10th, in a week, the FreeSIS-calculated forced selling amount was approximately 324.095 billion Korean won, about 30% higher than the average weekly level of the previous five weeks; compared to the low in mid-June, the scale has expanded by about 5 times. This indicates that the current situation is not just individual stock adjustments but a concentration of leverage fund passive liquidation following a sharp drop in the stock index.