China International Capital Co. says on-exchange leverage in Korean stocks is around 2x–5x and absolute leverage has reached historical highs, but leverage relative to market value is not extreme; market sentiment and liquidity indicators are slightly tight but not severe. High leverage can amplify volatility and create liquidity stress: a 16–36% decline would trigger margin calls, recent forced-liquidation pressure has risen, but medium-to-long-term direction depends more on fundamentals.