S. Korea sees sharp drop in bank deposits
South Korean banks recorded sharp withdrawals from deposits as customers redirected funds into real estate and equities. The five largest banks lost 20.19 trillion won in demand deposits between late September and Thursday, with daily outflows averaging 877.9 billion won. Officials project total withdrawals could reach 27 trillion won by month’s end, the largest decline in 15 months.
Household borrowing rose as mortgage lending rules tightened. Credit lines at major banks increased 713.4 billion won to reach 104.52 trillion won. Overdraft balances jumped 530.9 billion won from September to 38.79 trillion won, the steepest monthly rise since August 2024. Customers appeared to tap credit facilities to fund investment purchases.
