Investor deposits, which surged steeply alongside the rise of the KOSPI in the first half of the year, have decreased by more than 50 trillion won in about four months. Having recorded an all-time high last June, the figures have now regressed to early-year levels.

According to the Korea Financial Investment Association on the 24th, investor deposits stood at 88.6841 trillion won as of the 22nd, dropping to the lowest level since January 13 of this year (88.0489 trillion won), which had been the lowest point of the year.

Following the breach of the 90-trillion-won threshold on the 21st for the first time in about nine months, the funds shrank further, reaching their lowest level this year.

Compared to June 4th (139.6947 trillion won), when deposits approached 140 trillion won, a staggering 51 trillion won—more than one-third (36.5%) of the total—has vanished in roughly four months.

Investor deposits refer to funds deposited by individual investors into securities accounts to purchase stocks that have not yet been deployed into investments. They act as "waiting funds" for stock investments.

For instance, if an investor deposits 10 million won into a securities account, purchases 7 million won worth of Samsung Electronics [005930] shares, and has 3 million won remaining, that remaining 3 million won becomes an investor deposit.

These deposits increase when individuals transfer funds from banks or other sources for investment purposes, or when they sell previously acquired stocks. Conversely, they decrease when stocks are purchased or funds are transferred back to banks and other institutions.

Reviewing the net trading status of individual investors in the stock market from June 4th, when deposits peaked, through the 23rd, individuals net-purchased over 44 trillion won (44.1661 trillion won) worth of shares on the KOSPI market.

The scale of net purchases in KOSDAQ stocks also reached 3.1456 trillion won, alongside massive acquisitions of exchange-traded funds (ETFs).

Since June 4th, the scale of ETF net purchases has hit 28.2538 trillion won. While this includes net purchases through Individual Retirement Pension (IRP) and pension savings accounts, it is estimated that trillions of won were also purchased through standard stock accounts.

Considering the scale of net purchases by individuals across these markets, the reduced deposit amount of "51 trillion won" appears to have been largely deployed into the domestic stock market, including the KOSPI.

An industry insider noted, "This implies that stock funds have not massively migrated back to banks or other institutions. A significant portion of the deposits likely went toward purchasing stocks and may currently be tied up in the recent bearish market."

During the first half of the year, despite individuals purchasing stocks on a large scale, investor deposits actually increased. This was because the volume of funds flowing into stock accounts exceeded the volume used for stock purchases during the bull market.

However, since deposits peaked, the continued net buying by individuals—combined with an unstable downward market—appears to have drastically reduced any additional capital flowing into the stock market.

Unlike the first half of the year, when massive capital was poured in to absorb foreign selling pressure, the decline in deposits could expose the stock market to downward pressure due to a lack of supply and demand.

The KOSPI index on January 13, when deposits were at their lowest point for the year, stood at 4,692.64, showing a difference of more than 800 points compared to 5,533.77 on the 22nd.

[ⓒ Global Economic Times. 무단전재-재배포 금지]