Fixed deposit balances at the five major banks have exceeded 1,000 trillion won for the first time in history. While growth was modest through the first half of this year, a sharp increase has continued since July into this month amid heightened stock market volatility. As banks raised deposit rates and introduced special promotional products, funds are moving from risky assets such as stocks to safe-haven assets.
According to financial sector data released on the 25th, fixed deposit balances at KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank, and NH NongHyup Bank stood at 1,000 trillion 917 billion won as of the 21st. This represents an increase of 15 trillion 151.8 billion won in just three weeks compared to 984 trillion 939.9 billion won at the end of July, and more than 50 trillion won in less than two months compared to 949 trillion 399.8 billion won at the end of June.
The growth trend in fixed deposits is also notable when compared to last year. The five major banks’ fixed deposits stood at 926 trillion 701.3 billion won at the end of 2024 and rose to 939 trillion 286.3 billion won by the end of 2025, an increase of 12 trillion 585 billion won over one year. The increase in the first half of this year was only around 10 trillion won. However, starting in July, the pace of growth accelerated sharply, surpassing 1,000 trillion won in just two months.
In the financial sector, it is believed that retail investors who realized profits amid a sharp decline in the stock market recently have moved funds into fixed deposits. Additionally, companies are thought to have contributed by channeling surplus funds secured through strong export performance into deposits.
In response to this trend, banks have actively raised interest rates since July to secure deposit assets including fixed deposits. Earlier, concerns about a "money move" crisis were raised after the five major banks’ fixed deposits fell by 32 trillion 703.5 billion won in December alone due to a sharp stock market rally that began at the end of last year.
Major commercial banks have continued to raise deposit rates since last month and are now introducing high-interest special promotional products this month. Special products offered by NH NongHyup Bank, Woori Bank, and Shinhan Bank with annual interest rates of 3.7%, 3.6%, and 3.5% respectively, continue to sell out in rapid succession.
Bank deposit rates are approaching the 4th% mark. Standard Chartered Bank Korea raised its deposit rate by 0.1 percentage point (p) on the 27th of last month, pushing the maximum interest rate for its representative deposit product "e-Green Save Deposit" to 3.85% annually.
in FINANCE
