Daily Trading 47 Trillion · Deposits 70 Trillion... Stock Market Heating Up Since Early Year

[Asia Economy Reporter Koh Hyung-kwang] As the KOSPI surpassed the 3000-point mark for the first time in history, the daily trading volume of the domestic stock market exceeded 47 trillion won, setting a record high. Customer deposits, considered as standby funds for stock investment, also approached 70 trillion won, marking an all-time high. This phenomenon is interpreted as a result of abundant liquidity in the market moving into the stock market amid a low-interest-rate environment.

According to the Korea Exchange on the 7th, the combined daily trading volume of the KOSPI and KOSDAQ markets reached 47.4309 trillion won the previous day. This is the largest daily trading amount ever recorded. The KOSPI alone saw nearly 30 trillion won in trading, totaling 29.9093 trillion won in a single day, which is also the highest daily figure to date. The KOSDAQ recorded 17.5216 trillion won in trading the previous day. The highest daily trading volume for KOSDAQ was 20.8487 trillion won, recorded on August 27 last year.

The stock market trading volume first exceeded 41 trillion won on the opening day of this year’s market, January 4, with 41.8898 trillion won. The following day, January 5, it increased by 4.3 trillion won compared to the previous day, reaching 45.2407 trillion won, and then rose to 47.4300 trillion won the next day, continuously breaking record highs. This figure is more than double the average daily trading volume of 22.9 trillion won last year when the market was highly volatile due to the COVID-19 pandemic. Compared to 2018, when the market was in a box range (referred to as "Boxpi") with a daily trading volume of 11.5 trillion won, this is more than four times higher.

Customer deposits, regarded as standby funds for stock purchases, are also breaking record highs daily. According to the Korea Financial Investment Association, as of January 5, customer deposits reached 69.4409 trillion won, nearing 70 trillion won. This is an increase of 1.15 trillion won in just one day from 68.2873 trillion won the previous day. Compared to the end of 2019 (28.52 trillion won), this is more than double. Since customer deposits are perceived as a safety net to defend against market downturns, this factor is seen as boosting expectations for the stock market in the new year.

Margin trading, or "debt investment," has also surged to an all-time high. The outstanding balance of individual credit loans reached 19.6241 trillion won as of January 5. This is an increase of 270 billion won compared to the previous day (19.3522 trillion won). Compared to the end of 2019 (9.21 trillion won), this is a twofold increase. Lee Jae-sun, a researcher at Hana Financial Investment, stated, "Since last year, there has been a strong inflow of individual buying power, and the abundant liquidity in the market is gradually moving into the stock market. Supported by low interest rates, this trend is expected to continue for the time being."

This content was produced with the assistance of AI translation services.