Investor deposits fall below W100tr for first time in 6 months as retail traders retreat

Investor deposits held in brokerage accounts — cash set aside for stock purchases — have fallen below 100 trillion won ($70.7 billion) for the first time in about six months, as South Korea's stock market enters its second consecutive month of correction.

The funds have shed roughly 42 trillion won in just over two months since hitting an all-time high in June, underscoring a clear pullback in money waiting on the sidelines of the market.

According to the Korea Financial Investment Association, investor deposits stood at 97.93 trillion won as of Tuesday, down 2.79 trillion won from 100.72 trillion won the previous session.

Investor deposits represent cash sitting in brokerage accounts that has not yet been deployed into stocks. The figure had swelled sharply alongside rising share prices earlier this year, but has been declining as the Kospi came under pressure in recent months.

The last time deposits fell below 100 trillion won was Feb. 13, when they stood at 99.27 trillion won — making Tuesday's reading the lowest since Feb. 10, when they reached 95.3 trillion won. Compared with the record high of 139.69 trillion won set on June 4, deposits have dropped 41.77 trillion won, or 29.9%.