Record Foreign Selling and $25B Korean Margin Debt Fueled Asia's Chip Stock Crash

Foreign investors dumped Asian equities at the fastest pace in at least 16 years in H1 2026, per Reuters. In South Korea, $25 billion in record margin debt amplified the Kospi's 8% plunge on July 2, forcing brokerages to liquidate positions and triggering 20-minute circuit breakers. The leverage turned a sentiment-driven selloff into a mechanical cascade.