Finance

Stock market slump drains sidelined cash as deposits fall to 90 trillion won

Investor deposits and margin lending in South Korea are falling as stock market volatility rises. Investor deposits stood at 90.3 trillion won as of Oct. 20, down 1.8 trillion won from the previous session and marking a sixth straight decline. Margin loan balances fell to 30.5 trillion won, their lowest since Aug. 12. The KOSPI closed down 3.73 percent at 5,552.74 on Oct. 20, while forced selling also eased.

Finance

FSC holds emergency check on stock market plunge, urges restraint on credit provision

South Korea’s financial authorities launched an emergency market check after a sharp fall in local stocks. They urged financial companies to refrain from indiscriminate credit provision and to strengthen risk management. Authorities and related agencies agreed to stay alert to heightened volatility while guarding against excessive anxiety and sharp herding. They also said they would step up monitoring for market-disrupting activity and be ready to implement contingency plans quickly if needed.