Overdraft balance hits highest in 3 years and 8 months... Debt-fueled investment sparked again

[Financial News] The outstanding balance of overdrafts (credit limit loans) at major commercial banks has swelled to its highest level in 3 years and 8 months.
8%, the highest since the COVID-19 pandemic. Although banks are successively releasing measures to manage household loans, the enthusiasm for "debt-financed investment" (borrowing to invest) using existing overdrafts shows no signs of subsiding. 3363 trillion won as of the 25th.
6609 trillion won). Overdraft balances have increased by trillions of won for two consecutive months starting in May. 8039 trillion won in June.
4388 trillion won), and June maintained a similar scale. 6 billion won in the fourth week (22nd–25th). It is interpreted that leveraged investment using overdrafts increased as volatility grew last week, with the KOSPI falling nearly 10% before rebounding to the 5% range.
9289 trillion won). 8401 trillion won). 8% as of the 25th.
7469 trillion won for overdrafts opened at the five major banks was actually used. 2%), a period when stock prices rose significantly. 0% in the first quarter of this year.
It is estimated that the overall utilization rate has risen even higher, given that credit loans increased even more steeply in the second quarter. In the report, the Bank of Korea pointed out that "potential instability factors in our financial system exist, such as the possibility of accumulating financial imbalances due to increased asset investment utilizing leverage and concerns about the expansion of non-performing loans in vulnerable sectors due to changes in financial conditions.
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ahnman@fnnews.com Ahn Seung-hyun Reporter