Money is moving out of South Korea’s stock market and back into bank deposits as market swings intensify and investor risk appetite weakens. According to the report, the shift has been driven by a pullback in semiconductor shares and tighter oversight of leveraged investing, producing what was described as a reverse flow of funds. As of the end of July, time deposit balances at South Korea’s five largest banks — KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup — reached KRW 973.49 trillion, up KRW 24.09 trillion from the previous month. That marked the biggest monthly increase so far this year. At the same time, capital parked around the equity market also shrank. Data from the Korea Financial Investment Association showed investor securities account deposits, or cash waiting to be deployed into stocks, fell from a record KRW 139.69 trillion on June 4 to KRW 107.20 trillion by July 28. Credit-backed trading balances also dropped to KRW 33.19 trillion from a peak of KRW 37.72 trillion on July 2, a decline of about KRW 4.5 trillion, or roughly 12%.
Funds are moving out of South Korea’s stock market and into bank deposits as recent market volatility dents investor risk appetite. The report said money that had been sitting near the equity market is now flowing back to safer assets such as bank products.
The shift came as semiconductor shares pulled back and regulators tightened oversight of leveraged investing. That combination has led to what the report described as a “reverse flow of funds” in the South Korean market.
Top five banks posted the largest monthly gain this year
As of the end of July, time deposit balances at South Korea’s five largest banks — KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup — stood at KRW 973.49 trillion. That was up KRW 24.09 trillion from the end of the previous month, marking the biggest monthly increase so far this year.
Cash around the stock market also contracted
Data from the Korea Financial Investment Association showed that investor securities account deposits, or funds waiting to be used for stock trading, hit a record KRW 139.69 trillion on June 4. By July 28, that figure had fallen to KRW 107.20 trillion, a drop of more than KRW 32 trillion in less than two months.
Margin financing balances, a gauge of leveraged trading activity in the market, also declined over the same period. The balance fell to KRW 33.19 trillion, down about KRW 4.5 trillion from the KRW 37.72 trillion peak recorded on July 2. That represented a decline of roughly 12%.
The figures were cited by Daum and point to a faster move by market funds into time deposits as stock market volatility persists.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
