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South Korea bank time deposits rise KRW 24.09 trillion as risk appetite cools

South Korea bank time deposits rise KRW 24.09 trillion as risk appetite cools

Brokerage cash for stock purchases fell by more than KRW 35 trillion from a June record as July's KOSPI and KOSDAQ rout pushed investors toward bank deposits and away from leveraged chip bets.

Fact Check
The precise headline figure (KRW 24.09 trillion increase in bank time deposits in July, reaching 973.49 trillion won at the five major banks) is confirmed by ABAB News and reported by KuCoin and other outlets. BigGo Finance independently corroborates both the ~₩24T monthly time-deposit surge and the surrounding narrative: a July semiconductor-led equity rout that unwound leveraged retail bets, alongside a record late-month rebound (KOSPI +17.91% on July 31). The claim's supporting context — cash moving from brokerage/securities accounts (falling from 139.69T to 107.20T) into bank deposits, and the broad market breadth of the sell-off — is consistent across sources. All specific quantitative and contextual elements align.
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Summary

Funds in South Korea shifted into safer assets as a broad July stock-market selloff, sharp losses in semiconductor shares and weaker liquidity reduced risk appetite. Time deposits at five major banks rose KRW 24.09 trillion from a month earlier to KRW 973.49 trillion at the end of July, while investor securities-account deposits fell from a record KRW 139.6948 trillion on June 4 to KRW 104.6584 trillion on July 30, according to Korea Financial Investment Association data released Aug. 3. The Korea Exchange said 1,859 of 2,645 KOSPI and KOSDAQ stocks declined between June 30 and July 31, with the KOSPI down 22.2% and the KOSDAQ down 21.4%, their worst monthly drops since October 2008 despite a record 17.91% rebound on July 31. Retail investors reversed from heavy buying in May and June to record selling in July as leveraged bets on Samsung Electronics, SK Hynix and related single-stock ETFs magnified losses and sent money back toward safer holdings.

Terms & Concepts
  • Investor deposits: Funds kept in securities company accounts for stock purchases; declines can indicate weaker market liquidity and softer supply-demand momentum.
  • Single-stock leveraged ETF: An exchange-traded fund that uses leverage to amplify the daily return of one underlying stock, increasing both potential gains and losses.
  • KOSPI: South Korea's benchmark stock index for major listed companies.