South Korean brokerage deposits fall below 100 trillion won as margin loans top 33 trillion

Investor deposits at South Korean brokerages fell to 98.92 trillion won on Wednesday, dropping below 100 trillion won for the first time in two weeks, while margin loan balances returned to the 33 trillion won range. The divergence suggests cash-like funds are leaving a range-bound market even as some existing investors increase leverage. Deposits have fallen 40.78 trillion won, or 29.2%, from their record of 139.69 trillion won on June 4. Retail investors net sold 2.25 trillion won of KOSPI shares on the 26th, while deposits also declined, indicating that sale proceeds may have exited brokerage accounts rather than remaining available for investment. Margin loans rose to 33.1 trillion won, and margin trading receivables reached 1.15 trillion won. Forced liquidations totaled 12.7 billion won, or 1.3% of margin receivables. Financial investment industry sources warned that a correction could trigger stop-loss selling and collateral-driven liquidations, amplifying volatility.

The information on this website is generated using AI and we cannot guarantee its accuracy. Please use it as reference information only.