Korean Bank Time Deposits Surge 24.09T KRW Amid Stock Market Capital Flight

South Korean investors shift funds from equities to banks, driving a record 24.09T KRW monthly rise in time deposits while idle stock funds drop by over 32T KRW.

Woofun AI reports that heightened volatility and regulatory tightening on leveraged investments in South Korea have triggered a significant withdrawal of capital from the stock market. Investors are reallocating assets toward safe-haven instruments, resulting in a notable contraction of liquidity within equity trading channels.

Data indicates that time deposit balances at the five major Korean banks reached 973.49 trillion KRW by the end of July, reflecting a monthly increase of 24.09 trillion KRW.

Concurrently, investor securities account deposits fell from a peak of 139.69 trillion KRW in early June to 107.20 trillion KRW by late July. Credit trading financing balances also declined by approximately 12% to 33.19 trillion KRW.