ChainThink reports that on August 1, according to South Korean media Daum, recent volatility in the Korean stock market has intensified, leading to a decline in investor risk appetite, with capital flowing back into safer assets such as banks.
The report noted that adjustments in the semiconductor sector and stricter regulation of leveraged investments have prompted funds awaiting investment to exit the stock market.
Data shows that as of the end of July, the total time deposit balances of South Korea’s five major banks—KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup—reached 973.49 trillion KRW, an increase of 24.09 trillion KRW from the previous month, marking the largest monthly increase this year.
According to data from the Korean Financial Investment Association, investor securities account deposits reached a record high of KRW 139.69 trillion on June 4, declining to KRW 107.20 trillion by July 28—a reduction of over KRW 32 trillion in less than two months.
During the same period, the margin loan balance decreased to KRW 3.319 trillion, a reduction of approximately KRW 450 billion, or about 12%, from the peak of KRW 3.772 trillion on July 2.