Surge in Forced Sales Linked to Stock Loans Exceeds Last Year's Total

Personal investors borrowing funds to purchase stocks through financial companies linked to securities firms, known as stock loans, have seen a significant increase in forced sales. This surge is attributed to the volatile stock market this year, which has led to a decline in collateral value, resulting in many investors being unable to manage their borrowed funds and having their stocks forcibly sold. The total amount of forced sales related to stock loans in the first seven months of this year has already surpassed three times the total for the entire previous year.

According to data received on September 1 from the office of Democratic Party lawmaker Kang Jun-hyun, the total amount of forced sales related to stock loans from January to July this year reached 483.9 billion won, which is 3.4 times higher than last year's total of 142.2 billion won.

The number of accounts involved in forced sales also increased to 4,271, up 2.6 times from 1,634 accounts last year. In just seven months, this figure has significantly exceeded the total for the entire previous year.

In the past five years, the total amount of forced sales related to stock loans was 345.1 billion won in 2021, 356.2 billion won in 2022, and decreased to 151.2 billion won in 2023. It rose again to 229.4 billion won in 2024 but fell to 142.2 billion won in 2025. This year, the total for the first seven months has already surpassed the annual totals for the past five years.

The balance of stock loans is also on the rise. It decreased from 3.3 trillion won at the end of 2021 to 1.1 trillion won at the end of 2024, but rebounded to 1.4 trillion won by the end of 2025, and as of July 31 this year, it has increased to 1.5 trillion won.

Stock loans are a type of linked credit product that allows investors to borrow funds to purchase stocks through financial companies associated with securities firms. When stock prices fall, the value of the collateral decreases, and if investors cannot provide additional collateral, it leads to forced sales. With the recent increase in leverage investments among individual investors coinciding with market volatility, the reality of 'debt investment bills' has emerged in the stock loan sector.

Kang Jun-hyun stated, "Since stock loans are structured to link securities accounts with loans, the risk of investor losses can rapidly increase during periods of market volatility. Given that forced sales are rising much faster than the increase in loan balances, it is necessary to examine whether the management of stock loan lending and collateral is being conducted appropriately." He emphasized the need for financial authorities to accurately assess the overall scale of the stock loan market and the status of forced sales, ensuring there are no blind spots in management and oversight.