As the domestic stock market rallies and investors continue "debt investing" (borrowing to invest), the outstanding balance of overdraft accounts (credit line loans) at the five major banks has again topped 40 trillion won.
According to the financial sector on the 10th, the outstanding loan balance of personal overdraft accounts at the five major banks—KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup—totaled 40.5029 trillion won as of the 7th.
This is an increase of 715.2 billion won in just three trading days compared with the end of last month (39.7877 trillion won). This refers to the amount actually drawn, not the credit limit.
On a month-end basis, it is the largest scale in about 3 years and 4 months since the end of January 2023 (40.5395 trillion won). The increase seen this month is the largest in 2 years and 7 months since October 2023, when it rose by 872.6 billion won.
As the KOSPI broke through the 7,500 level and hit a record high, it is seen that individual investors tapped short-term funds such as overdraft accounts to invest in stocks.
The overdraft account balance had stayed in the 30 trillion won range for some time, then exceeded the 40 trillion won mark at the end of November last year due to a spillover effect from real estate regulations. It then fell back to the 39 trillion won range at the start of the year as year-end bonuses flowed in.
A flow of funds is also being detected in the deposits market. Demand deposits, classified as investment-ready funds, stood at 696.0511 trillion won as of the 7th, down 51.3 billion won from the end of April. The decreased deposits are believed to have largely moved into the stock market.