Impact of Iran situation? Domestic loan investment boom reignited

Recent tensions in Iran have caused significant fluctuations in the domestic stock market, reigniting a surge in investment through loans. Many investors are looking for low-priced buying opportunities and are transferring funds to securities firms.

Credit loan balances at major domestic banks have surged sharply, while deposit balances are decreasing. In fact, the personal credit loan balances at the five largest banks increased by about 1.3 trillion won in just five days, marking the largest increase since the financial crisis. Analysts believe this growth is closely related to the Iran situation, which has fueled stock market volatility. This is because, after the sharp decline in stock prices, many investors are seeking to buy at lower prices.

On the other hand, due to multiple regulatory measures and sluggish housing transactions, mortgage loans are on the decline. The mortgage loan balances at major banks have decreased by approximately 500 billion won since the end of February. This has led to renewed attention on the stock market as a primary investment channel.

Meanwhile, despite large-scale outflows of deposits, some interpret this as a result of increased investment demand. Although market interest rates are rising, analysis suggests that funds are flowing toward higher-yield opportunities.

Looking ahead, based on the Middle East political situation and domestic and international economic conditions, credit loans are likely to increase further, with funds expected to continue flowing into the stock market. If market stability and investor confidence are restored, this could have a positive impact on the overall economy.