▲ A customer walks out of a bank in central Seoul on June 11, 2026. (Yonhap)

overdraft balance-increase

Outstanding overdrafts reach 4-yr high on leveraged stock investments

SEOUL, June 28 (Yonhap) -- The amount of money drawn out from overdraft accounts rose to the highest level in nearly four years last week, as borrowers took out more credit for stock investment, data showed Sunday.

The outstanding overdraft balance of individuals at five major lenders -- KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank and NH Nonghyup Bank -- stood at 43.34 trillion won (US$28.3 billion) as of Thursday, according to industry data.

It marks the highest figure since October 2022 in terms of end-month balance.

Outstanding credit loans, including overdrafts, came to 108.7 trillion won as of Thursday, the highest level in three years since June 2023.

As of Thursday, borrowers spent a total of 43.3 trillion won from such accounts with a combined maximum credit limit of 96.7 trillion won, according to the data.

The average usage rate of overdraft accounts was 44.8 percent, recording the highest level since the pandemic.

Industry watchers expect overdraft usage could expand even further, as borrowers use their overdrafts to secure short-term liquidity amid the volatile market.

The benchmark Korea Composite Stock Price Index (KOSPI) has shown dramatic swings in the past week, falling by nearly 10 percent on Tuesday and sharply rising by more than 5 percent on Thursday.

The Bank of Korea (BOK) has also raised concerns over leveraged investments, saying their increase could pose potential risks to South Korea's financial stability.

According to the central bank's financial stability report released Wednesday, the exhaustion rate of overdrafts rose from around 35 percent in 2024 to 35.4 percent as of end last year and to 36 percent in the first quarter of 2026.

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