Bullish
Korean Bank Time Deposits Surge 24T KRW as Stock Market Funds Retreat
2026-08-02 16:22:30
Heightened volatility triggers reverse fund migration, with 24T KRW flowing into major bank deposits while securities account balances drop over 32T KRW.
Woofun AI data shows that time deposit balances at South Korea's five major banks reached 973.49 trillion KRW by the end of July, reflecting a monthly increase of 24.09 trillion KRW. This marks the largest single-month gain recorded this year, driven by shifting investor risk appetite amid market volatility.
Securities account deposits declined from a peak of 139.69 trillion KRW on June 4 to 107.20 trillion KRW by July 28, a reduction exceeding 32 trillion KRW.
Concurrently, credit transaction financing balances fell approximately 12% from their July 2 high of 37.72 trillion KRW to 33.19 trillion KRW.
WOOFUN AI
Impact Assessment · Quick Read
The substantial shift from equities to fixed-income deposits indicates a significant contraction in retail liquidity and risk tolerance within the Korean market. As standby funds and margin trading volumes decrease, immediate buying pressure for local equities may weaken, potentially increasing short-term volatility. Investors should monitor whether this capital preservation trend persists or if funds rotate back into risk assets once semiconductor sector adjustments stabilize.
Generated by WOOFUN AI · For reference only, not investment advice
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