KOSDAQ Margin Credit Falls 23.4% as Large-Cap Stocks Concentrate Liquidity on July 14

According to the Financial Investment Association, margin credit balances on South Korea's KOSDAQ fell sharply to 7.55 trillion Korean won as of July 10, down 2.30 trillion won (23.4%) from 9.86 trillion won on May 27, while capital flowed to large-cap stocks.

During the same period, margin credit on the KOSPI (South Korea's main exchange) rose to 28.02 trillion won from 26.83 trillion won. Samsung Electronics and SK Hynix combined held an estimated 12.51 trillion won in margin balances, equivalent to 1.7 times KOSDAQ's entire margin credit outstanding. Securities firms tightened credit standards for mid-cap and small-cap stocks amid volatility, restricting new margin loans and rollovers while maintaining relatively better liquidity access for large-cap stocks.