The volatility of crazy tech stocks has led South Korean retail investors to reduce margin loans

According to Jinshi, since the end of June, margin loans for stock trading in South Korea have fallen by more than 10%. The assets under management of leveraged ETFs linked to Samsung Electronics and SK Hynix plummeted from over $11 billion on June 25 to $4.1 billion, mainly due to the decline in the prices of related stocks. In addition, the funds flowing into such funds over the past two weeks have also turned negative.

Ivan Feinseth, Chief Investment Officer of Tigress Financial Partners, stated that large-scale deleveraging is usually a healthy and necessary market adjustment.