Stock Market Idle Funds Decline... Did Margin Calls Cause Jitters?

Margin Loan Balances Hit Record Highs

Outstanding Short-Selling Capital Also on the Rise

After the KOSPI index surpassed the 8,000-point mark and then declined, approximately 300 billion won was forcibly liquidated through margin calls over the past three days, and the amount of idle funds waiting to enter the stock market also decreased. While the stock market has regained momentum since the labor-management agreement at Samsung Electronics on May 20, the outstanding balance of stock lending—a form of short-selling capital that bets on falling share prices—continues to rise.

According to statistics from the Korea Financial Investment Association on the 23rd, the amount of investors' deposits as of the 21st stood at 122.3819 trillion won. After hitting an all-time high of 137.4174 trillion won on the 12th, this figure has been on the decline. Investors' deposits refer to funds placed in securities accounts to purchase stocks or proceeds from stock sales that have not yet been withdrawn.

The KOSPI reached the 'dream index' of 8,000 points on the 15th, but quickly reversed and plunged by more than 8% the following day, causing investors' deposits to decrease as well. From the 18th to the 20th, the total amount of forced liquidations related to ultra-short-term 'unsettled trades'—where individual investors borrow funds from securities companies for just two days—exceeded 300 billion won.

On the 22nd, the KOSPI index opened at 7,873.12, up 57.53 points from the previous trading day. The domestic stock market status was displayed on the electronic board in the dealing room at the Hana Bank headquarters in Jung-gu, Seoul. On the same day, Samsung Electronics' stock price surpassed 300,000 won during trading. May 22, 2026. Photo by Jinhyung Kang

The outstanding balance of margin loans, which investors use to borrow funds from securities companies, reached an all-time high of 36.5675 trillion won as of the 15th. As share prices fell, insufficient collateral triggered forced liquidations.

Amid concerns over margin calls, the outstanding balance of margin loans dropped to 35.8561 trillion won on the 19th. However, as share prices rebounded recently, the figure increased to 36.4724 trillion won on the 21st. In particular, the margin loan balance in the KOSPI market hit a record high of 26.3644 trillion won on the 21st.

As the stock market rapidly recovers, demand for betting on declines is also increasing. The outstanding balance of stock lending reached 177.0929 trillion won on the 21st, the highest since May 14, which was the last trading day before the KOSPI surpassed 8,000 points, when the figure stood at 182.4305 trillion won.

This content was produced with the assistance of AI translation services.