Dormant Market Funds Teeter Below 90 Trillion Won... 'Debt-Fueled Investments' Shrink to 30 Trillion Won

As the domestic stock market continues its volatile trend, investor deposits, which serve as waiting funds for the market, have fallen back to the 90 trillion won range.

Debt-fueled investments, or investing with borrowed money, also continued their downward trend, shrinking to 30 trillion won.

According to the Korea Financial Investment Association today (the 21st), investor deposits stood at 90.2975 trillion won as of the 20th, down 1.799 trillion won from the previous session.

This marks the sixth consecutive trading day of decline and the lowest figure since January 14 (89.3099 trillion won).

The margin loan balance, an indicator of debt-fueled investments, also decreased by 594.3 billion won from the previous session to 30.5138 trillion won.

This is the lowest level since August 12 (30.4187 trillion won).

While investor deposits and debt-fueled investments tend to increase during bull markets, the recent decline is seen as a result of dampened investment sentiment as the KOSPI continues a volatile downward trend.

On the 20th, the KOSPI closed down 3.7% from the previous session at 5,552.74.

The amount of forced liquidation, where stocks purchased by investors using borrowed money are forcibly sold, dropped to 22.6 billion won, less than half of the 54.2 billion won recorded on the 19th.

Forced liquidation refers to the scale of mandatory liquidation that occurs in stock trading due to insufficient margin.

The scale of forcibly liquidated stocks had previously exceeded 50 billion won per day for five consecutive trading days up until the previous session.

The proportion of forced liquidation relative to margin receivables also decreased to 1.6%, down from 4.4% in the previous session.

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.