---
title: "The \"Minsky Moment\" for South Korean Stocks"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/294277056.md"
description: "HSBC analysis points out that South Korean stocks face the risk of a \"Minsky Moment,\" with high leverage potentially triggering a liquidity crisis. Although retail margin balances fell 15% from their peak in July to 32 trillion won, and the scale of single-stock leveraged ETFs dropped to around $10 billion, investors have not withdrawn en masse, with forced liquidations accounting for only 2%, leaving absolute leverage levels still high"
datetime: "2026-07-30T00:10:05.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/294277056.md)
  - [en](https://longbridge.com/en/news/294277056.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/294277056.md)
---

# The "Minsky Moment" for South Korean Stocks

HSBC analyzes the risk of a "Minsky Moment" currently facing the South Korean stock market, where, against a backdrop of high leverage, the market could experience a sudden decline, triggering a liquidity crisis.

Although retail margin balances have retreated from their peaks, absolute levels remain high. Furthermore, while the scale of single-stock leveraged ETFs has decreased due to shrinking market capitalization, investors have not withdrawn on a large scale.

In July, retail margin balances in the South Korean stock market fell by approximately 15% from their June peak, but still remained as high as about 32 trillion won ($22 billion). In July, only 2% of outstanding margin accounts were subject to forced liquidation. The total size of single-stock leveraged ETFs dropped to around $10 billion, approximately one-third of their peak level, driven primarily by capital losses rather than investor exit.

![Image](https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/c827b4c1-072b-423d-b1d0-7604d50be80b.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg)

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