Business · Markets · 2 hrs ago
Funds outside deposits at South Korea’s five largest banks rise by 50.5 trillion won
In October, customers put 50.5 trillion won into non-deposit products at South Korea’s five largest banks, the biggest monthly increase since records began in 2022.
The balance in these products reached 575.5 trillion won by October 29, up 9.6% from the end of September.
They include trusts, funds, retirement pensions and equity-linked deposits, whose returns can vary with investment performance.
A strong stock market and year-end pension contributions helped drive the shift, as companies make pension payments and individuals add to retirement accounts for tax benefits.
The trend matters because it gives banks more income from investment-product fees, while some products can expose customers to losses.
Equity-linked deposits are covered by deposit protection, but may pay little interest; trusts and funds are not covered and can lose principal.
Banks are expected to see continued interest, but the growth also raises the risk of complaints over products that were not properly sold.
Funds held outside deposits at South Korea’s five largest banks rose by 50.5 trillion won in a month, reaching 575.5 trillion won as of October 29.
The increase was 9.6% from the end of September and the largest monthly rise since records began in 2022.
The funds include trusts, retirement pensions, funds and equity-linked deposits, whose returns can depend on investment performance.
The article cites strong stock markets, year-end retirement contributions and demand for tax benefits as factors behind the inflow.
Trusts and funds can lose principal, while equity-linked deposits may pay little interest depending on stock performance.
- Who
- South Korea’s five largest banks: KB Kookmin, Shinhan, Hana, Woori and NH NongHyup.
- What
- Their funds held outside deposits rose by 50.5 trillion won to 575.5 trillion won.
- When
- As of October 29; the increase was compared with the end of September.
- Where
- South Korea.
- Why
- The article points to demand for investment returns and tax benefits, a strong stock market and year-end retirement contributions.
This story does not have two clearly opposing sides.
Funds outside deposits at the five banks stood at the baseline used for the monthly comparison.
Funds outside deposits reached 575.5 trillion won, up 50.5 trillion won from the end of September.
Maeil Business published its report on the increase.
- Five banks
- KB Kookmin, Shinhan, Hana, Woori and NH NongHyup
- Funds outside deposits
- 575.5 trillion won as of October 29
- Monthly increase
- 50.5 trillion won, or 9.6%
- Record period
- Largest monthly increase since records began in 2022
- Deposit balance
- 1,734.6 trillion won last month
- Year-to-date comparison
- Funds outside deposits increased by 75.8 trillion won, compared with 71 trillion won for deposits
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What people are saying
Investors seeking both returns and tax benefits are increasing