The scale of investor deposit has surpassed 70 trillion won. This is the first time since January 2022. Investor deposit refers to the money that investors deposit with a securities firm to trade financial investment products such as stocks or funds. As investor deposits increase, trading of financial investment products also becomes more active.
According to the Korea Financial Investment Association on the 2nd, as of the previous day, the investor deposit amounted to 70 trillion 413.3 billion won. It increased by more than 10 trillion won within a month, surpassing 60 trillion won on June 2 after reaching 57 trillion 297.2 billion won at the end of May. The rise in the domestic stock market is believed to be significantly influenced by expectations following the launch of the new government and foreign investors' purchases.
Investor deposits sharply increased amid the liquidity-driven market that came with the COVID-19 pandemic in 2020. This was during the so-called 'Donghak Ant Movement.' It surpassed 40 trillion won in March 2020, 50 trillion won in August, 60 trillion won in September, and exceeded 70 trillion won in January 2021.
However, starting in 2021, it began to trend downward, peaking at 77 trillion 901.9 billion won. This was due to the prolonged 'box range market,' where the stock price index struggled to rise. Since the beginning of this year, the investor deposit has remained in the 50 trillion won range.
Securities firms have adjusted the upper limit of the Korea Composite Stock Price Index to 3,300-4,000 for the second half of this year, indicating that investor deposits could continue to increase. The KOSPI and KOSDAQ indices have briefly surpassed the 3,100 and 800 levels, respectively, but have stabilized at 3,075.06 and 782.17 as of the closing price on that day.
However, with U.S. President Donald Trump stating that he will send letters to countries to inform them of tariffs coinciding with the end of the mutual tariff suspension on the 8th of next month, there is a possibility of market volatility.
The balance of credit transactions, which indicates the degree of overheating in the stock market, is still within a safe range. As of the previous day, the balance of credit transactions was 20 trillion 879.8 billion won. The ratio to investor deposits is 29.7%.
Credit transactions are loans provided by securities firms that allow customers to borrow funds for stock purchases using their shares as collateral for a certain period. Typically, if the scale of credit transactions exceeds 35% of the deposit amount, it is considered the overheating phase of investment.