South Korean equities surged on 22 July 2026 following broker commentary indicating that the forced unwinding of leveraged positions, which had contributed to an approximately 30% decline from recent highs, is approaching its end. Bloomberg Markets reported the development, framing broker signals as pointing toward a stabilisation in the deleveraging process that has weighed on the market.
The KOSPI index registered a notable advance on the session, directly reflecting the reported reduction in margin-driven selling pressure. The EWY ETF, which tracks South Korean large-cap equities and provides international investors with direct exposure to the KOSPI's constituent companies, moved in line with the underlying index during the same period, as reported by Bloomberg Markets.
The margin unwind had been concentrated in South Korean financials, technology, and consumer sectors, which collectively bore the brunt of the approximately 30% drawdown cited by brokers. As leveraged positions in these segments were closed out, the associated selling pressure that had amplified the decline progressively diminished, according to Bloomberg Markets commentary.
Sources: Bloomberg Markets, CoinTelegraph