South Korea stock margin balances fall 13% to KRW 33.4 trillion

Investor deposits also slid to KRW 108.1 trillion by July 16 from a June 4 peak, signaling weaker retail appetite for equities.

Summary

South Korea’s retail stock trading momentum showed signs of cooling as margin balances for stock purchases fell to KRW 33.4 trillion ($22.6 billion) on July 16, the lowest level since April 15. The figure was down 13% from a late-June peak of KRW 38.6 trillion, according to Korea Financial Investment Association data. Investor deposits also declined, dropping to KRW 108.1 trillion on July 16 from a June 4 high of KRW 139.7 trillion, reinforcing the view that individual investors’ enthusiasm for stocks has eased.

Terms & Concepts
  • margin balances: Borrowed funds used to buy stocks
  • investor deposits: Cash parked for future stock purchases