[THE INVESTOR] Customer deposits at Korean securities companies have surged to a new high, data showed on June 21, as investors seek high-yielding vehicles amid record-low interest rates.
On June 9, the Bank of Korea slashed its key interest rate by a quarter-percentage point to 1.25 percent in an apparent bid to cushion any fallout from the ongoing corporate restructuring drive and bolster the sputtering economy.
It was the first rate cut in 12 months.
According to data by the Korea Exchange and the Korea Financial Investment Association, outstanding customer deposits for stock investments reached a fresh all-time high of 26.2 trillion won (US$22.6 billion) as of Friday.
Customer deposits refer to funds that investors put in securities companies to buy stocks or to withdraw after selling holdings. Such funds are called floating money, which can be invested in stocks at any time.
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