SEOUL: Bank deposits in South Korea have been shrinking rapidly, with households also increasingly boosting their overdraft loans to secure funds for investments amid surging real estate and stock prices, data shows.
Combined demand deposits at five major lenders – KB Kookmin, Shinhan, Hana, Woori and NH NongHyup – stood at 649.53 trillion won (US$451.3bil) as of last Thursday, down 20.19 trillion won from the end of September, according to data from the banks.
This represents an average daily outflow of 877.9 billion won, with deposits projected to fall by about 27 trillion won by the end of the month, marking the steepest decline in 15 months since July 2024.
A huge portion of the demand deposits is believed to have flown into the real estate and stock markets amid the recent investment boom, according to officials.
Household loans are also on the rise, largely driven by credit loans centred around overdraft accounts as recent regulations have made it harder to secure home-backed loans. — The Korea Herald/ANN
