Search results for term deposits
Finance
Savings banks raise deposit rates as money moves out, 4 percent products return
South Korean savings banks are raising deposit rates as deposit-like funds move out amid a stock market tilt. The average 1-year term deposit rate at 79 savings banks reached 3.74 percent as of June 26, the highest since November 2024. OK Savings Bank lifted rates to 4.5 percent on some products, while others raised term and demand-account rates toward 3 percent. Banks have also increased deposit rates, narrowing the gap.
AI & Enterprise
Korean retail investors pull savings and insurance to pile into Samsung and SK hynix
Overseas media are focusing on a South Korean market trend in which retail investors are pulling money from deposits and savings-type insurance to buy large semiconductor stocks. BeInCrypto reported that funds are moving from safe assets into equities, concentrating on SK hynix and Samsung Electronics as expectations for AI semiconductor demand rise. It cited falling savings bank and term deposit balances, rising credit buying by older investors, and increased insurance cancellations, while warning of risks from leverage and volatility.
Finance
Banks rush to launch ELD products as regulator keeps watch
South Korean banks are rolling out equity-linked deposits (ELDs) as falling deposit rates and a strong stock market lift demand for alternatives to fixed-term deposits. The Financial Supervisory Service is looking closely at sales practices as ELD issuance rises. It says returns can vary widely with index moves, some products may lock in low rates due to knock-out options, and early termination can bring fees. Authorities are urging stronger oversight and clearer explanations to consumers.