Koreans ditch savings for stocks as overdraft borrowing spikes sharply
Personal borrowing through overdrafts at South Korea's five biggest banks surged in early March. The total jumped by 1.3 trillion won (around $875 million) in just three business days. At the same time, deposits fell sharply as customers shifted funds into the stock market today instead.
The balance of personal overdraft accounts hit 40.72 trillion won by Thursday, March 8. This rise reflects actual borrowing, not just approved credit limits. The increase followed stricter mortgage rules that pushed borrowers toward alternative loans.
Overdraft levels had previously peaked at 52.9 trillion won in April 2021 before steadily declining. Tighter household lending regulations kept totals in the 30 trillion won range from February 2023 onward. A brief rebound occurred in November 2025, reaching 40.08 trillion won, as stock market gains encouraged more investment.
Meanwhile, time deposits at the major banks dropped by 2.79 trillion won from the end of February, landing at 944.1 trillion won. Demand deposits also shrank by 8.6 trillion won over the same period. Analysts suggest the money moved into the stock market today instead.
The latest figures show a clear shift in how Koreans are managing their money. Overdraft borrowing has risen sharply, while deposits have fallen. The trend highlights the impact of stricter lending rules and a strong stock market on personal finances.
