Stock Crash Wipes Out Leveraged Bets in Korea, Sowing Panic

A sudden stock market crash in Seoul triggered mass panic on Wednesday, with investors rushing to withdraw funds amid plummeting share values. The collapse wiped out highly leveraged bets, leaving many retail traders facing catastrophic losses. The epicenter of the chaos was Mirae Asset Securities’ downtown office, where long queues formed as clients scrambled to liquidate positions before further declines. Brokerage firms reported system overloads due to surging withdrawal requests. Leveraged investments—popular among South Korean retail traders—magnified losses as margin calls forced liquidations, accelerating the sell-off. Regulators had previously warned about excessive risk-taking in the overheated market. The crash follows months of speculative trading fueled by low interest rates and easy credit, which had driven stock valuations to unsustainable highs. Analysts now fear contagion across Asian markets. Authorities are investigating potential market manipulation and brokerage failures, while emergency measures to stabilize trading are under discussion. The fallout may prompt stricter leverage regulations.