KOSPI volatility drives sharp decline in investor deposits

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KOSPI volatility has triggered a sharp decline in investor sentiment, with South Korean investor deposits dropping significantly since July. Average daily deposits fell by nearly 20 trillion KRW over the past month, reaching 104.6584 trillion KRW by July 30. This represents a decline of over 35 trillion KRW from the peak of 139.6948 trillion KRW on June 4. The drop underscores reduced market liquidity and weakening supply-demand momentum.

Odaily Planet Daily reports: As the Korea Composite Stock Price Index (KOSPI) has experienced sharp volatility since July, even investor deposits, traditionally seen as a pool of观望 funds for the stock market, are rapidly declining. Last month, the average daily deposit size dropped by nearly 20 trillion won compared to the previous month—a level approximately 10 trillion won lower than in March this year, when the KOSPI underwent a correction amid military tensions between the United States and Iran.

According to data released by the Korea Financial Investment Association on the 3rd, as of the previous month’s 30th—the day the KOSPI index hit a阶段性 low—investor deposits totaled 104.6584 trillion Korean won. This represents a decline of over 35 trillion won in just about two months from the historical peak of 139.6948 trillion won recorded on June 4. Investor deposits refer to funds deposited by investors into their brokerage accounts for the purpose of purchasing stocks. A larger deposit pool increases the likelihood of enhanced market liquidity; conversely, a reduction in deposits inevitably weakens market supply and demand dynamics.

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