Investor Deposits Hit Record High of ₩85.9 Trillion, Fueling Stock Market Anticipation

## Stock Market Awaits: Investor Deposits Reach All-Time High of ₩85.9 Trillion On October 29, 2025, investor deposits soared to a record high of ₩85.9159 trillion. This indicates an unprecedented level of capital poised to enter the stock market, reflecting strong investor sentiment while also suggesting the potential for increased volatility. Experts attribute the rise in investor deposits to expectations of continued gains in the stock market, coupled with excess liquidity seeking viable investment opportunities. The active participation of retail investors is seen as a key driver of this influx of funds. However, concerns are being raised about the potential for excessive liquidity to amplify market volatility, prompting calls for investors to exercise caution. Investor deposits represent funds held in brokerage accounts earmarked for stock purchases, serving as an indicator of the market's potential buying power. An increase in these deposits typically signals investor optimism and a readiness to invest in the stock market. While generally a positive sign for market growth, experts caution against overlooking the risks of instability associated with excessive concentration of funds. The recent surge, with over ₩5 trillion added in just two weeks since surpassing ₩80 trillion on October 13, 2025, highlights the rapid pace of growth and the potential for capital to exit the market quickly in response to changing conditions. Meanwhile, margin loans also reached a record high of ₩25.0968 trillion as of October 29, 2025. Margin loans represent funds borrowed from brokerages to purchase stocks, essentially investing on credit. The rise in margin loans can indicate overheated investor sentiment and raises concerns about the potential for significant losses in the event of a market downturn. The concurrent increase in both investor deposits and margin loans is viewed as a factor that could further heighten the risk of market overheating. Experts advise investors to exercise caution and avoid excessive leverage. South Korean President Lee Jae-myung and government authorities have stated that they are closely monitoring the market situation and will take appropriate measures if necessary. Experts caution that while increased investor deposits may have a positive short-term impact on the stock market, they could also contribute to greater volatility in the long run. They point out that external factors such as interest rate hikes or global economic uncertainties could dampen investor sentiment, leading to a rapid outflow of deposits and a significant shock to the stock market. Therefore, they stress the importance of making investment decisions carefully and diversifying investments to mitigate risk. Furthermore, analyzing company fundamentals and adopting a long-term investment perspective can help secure stable returns. Former US President Donald Trump has also expressed concerns about the current international economic situation and urged investors to exercise caution. In conclusion, while the record high in investor deposits is an indicator of a thriving stock market, it is essential to recognize the associated risks of overheated investor sentiment and the potential for increased volatility. Investors should carefully analyze market conditions and make prudent investment decisions to pursue stable returns. The government must also continuously monitor the market and take measures to stabilize it, protecting investors to the best of its ability.