Finance
As stock market wobbles, funds return to deposits; banks stir up funding competition
As stock market volatility rises, money is shifting back toward bank deposits. Investor cash held on the sidelines fell below 100 trillion won, while time deposits at South Korea’s five largest banks grew by more than 35 trillion won in a month. After the policy rate was raised to 2.75 percent, one-year deposit rates at major banks moved into the 3 percent range. Analysts expect more selective competition for stable funding rather than an all-out rate war.
