South Korea's margin call to receivables ratio has spiked to ~5%, the 3rd-highest level ever.

This ratio measures the share of outstanding margin loans that has been flagged for a margin call, where brokers demand additional collateral or forcibly liquidate positions after prices move against borrowers.

This is more than 4 times its typical range of \~1% to 2% over the past 2 years.

Furthermore, brokerage receivables, the total value of outstanding margin loans, have exceeded KRW 2,000 billion (\~$1.34 billion), up from a typical range of KRW 900-1,000 billion (\~$640 million).

This comes as South Korean retail investors have piled into leveraged ETFs at a pace unlike anything seen before.

Meanwhile, \~1.2 million trading accounts have triggered margin calls, with 320,000–360,000 ultimately forcibly liquidated by brokers.

This means hundreds of thousands of retail investors have had their positions forcibly closed, with some still owing money to their brokers after liquidation.

This is becoming one of the most painful unwinds for retail investors in history.