Five Major Korean Banks See Overdraft Balances Hit 3-Year, 4-Month High Amid Stock Rally

Amid a strong run in South Korea’s stock market, retail investors are increasingly using credit-line overdraft loans, known locally as minus bankbooks, to avoid missing the rally. As a result, related balances at the country’s five major commercial banks have risen to their highest level in three years and four months. These loans allow borrowers to draw funds within a preset limit when needed, and they are drawing attention alongside demand for investment capital during the market upswing. The increase is viewed as a sign of greater retail risk appetite and broader market participation. However, investing with borrowed funds can also heighten exposure to market volatility. Source: yna.co.kr