Business · Markets · 3 hrs ago
South Korean overdraft loans top 44 trillion won as investors borrow to buy stocks
Balances on overdraft loans at South Korea’s five largest banks topped 44 trillion won on November 12.
The total was 44.26 trillion won, its highest level since August 2022.
Overdraft loans let customers borrow up to an agreed limit and use the money when needed.
Banks say individual investors are borrowing to buy stocks as they anticipate a rebound after a market decline.
The amount of money used against available overdraft limits has also risen, nearing half at some banks.
Meanwhile, money in easily accessed bank deposits fell for a second consecutive month.
The figures show more borrowing and less cash kept in these accounts, but no next steps are reported.
Overdraft balances at South Korea’s five largest banks exceeded 44 trillion won as of November 12, reaching their highest level in more than four years.
The balances rose by 6.682 trillion won, or 1.5%, from the end of October.
Banks interpret the increase as individuals using overdrafts to invest in stocks while expecting prices to rebound.
Demand deposits at the five banks fell for a second consecutive month, reaching 656.4744 trillion won on November 12.
- Who
- Individuals borrowing through overdraft accounts and the five largest South Korean banks.
- What
- Overdraft balances exceeded 44 trillion won, which banks interpret as linked to stock investing.
- When
- As of November 12; the article was published November 14, 2026.
- Where
- South Korea.
- Why
- Banks interpret the borrowing as individuals seeking to invest in stocks while expecting a rebound.
This story does not have two clearly opposing sides.
Overdraft balances at the five banks stood at 39.9275 trillion won.
More than 19 trillion won had flowed out of the five banks’ demand deposits since the end of September.
Overdraft balances reached 43.595 trillion won, while demand deposits had fallen by 12.1725 trillion won during the month.
Overdraft balances reached 44.2632 trillion won and demand deposits stood at 656.4744 trillion won.
- Five-bank overdraft balance
- 44.2632 trillion won as of November 12
- Change from end of October
- Up 6.682 billion won, or 1.5%
- Comparison with August 2022
- Highest level since the end of August 2022, when balances were 44.7699 trillion won
- Change from end of 2025
- Up 4.3357 trillion won, or 10.9%
- Demand deposits
- 656.4744 trillion won as of November 12