Personal fixed deposits under 100 million won hit lowest in 6.5 years as individuals shift to stocks

South Korean savers are increasingly moving away from traditional fixed deposits, particularly those under 100 million won, which have hit a six-and-a-half-year low in account numbers. This trend, as reported by the Hankyoreh, reflects a significant shift in individual investment strategies. Gone are the days when Koreans passively parked their savings in bank deposits; now, there's a clear inclination towards actively seeking higher returns. This move is largely driven by a desire to grow wealth more aggressively, with many individuals channeling their funds into stocks and other potentially more lucrative financial products, including those offered by second-tier financial institutions. A city bank official noted this changing sentiment, observing that fixed deposits are no longer the preferred option for many. The data starkly contrasts with accounts holding over 1 billion won. These larger accounts, predominantly held by corporations and the affluent, have either maintained their numbers or grown, indicating a bifurcated financial landscape. For these entities and individuals, fixed deposits remain a favored tool for managing substantial assets safely. The total deposit volume in these larger accounts has also seen a notable increase, underscoring the preference for security among those with significant capital, while smaller savers chase growth in a more dynamic market.

“

In the past, there was an atmosphere of tying up money in fixed deposits when you had a lump sum, but these days, people don't prefer fixed deposits. There is a tendency to actively increase money by turning to high-yield investments such as second-tier financial institutions and stocks.