Prof G Markets · Tuesday, August 4, 2026
The Korean stock market (KOSPI) saw a 44% crash from its June highs, with over a million people facing margin calls and hundreds of thousands having their accounts liquidated. This has led to widespread protests and calls to abolish leveraged ETFs, highlighting the dangers of these investment vehicles.
“It seems like South Korea is the perfect example of how this all goes wrong. I mean, we saw what happened last week, we saw the KOSPI, the South Korean stock market crashing 44% from its June highs.”
“We saw literally more than a million people in South Korea receiving margin calls, hundreds of thousands seeing their accounts liquidated to zero.”
“And a lot of people are saying, let's abolish these leveraged ETFs. Let's get rid of them.”