Park Han-sol reports on Korea's financial regulators, along with fintech and insurance. She previously wrote about the art world, from biennales and exhibitions to fairs and auctions, with a focus on Seoul and the figures shaping the scene. Before joining The Korea Times, she spent a year at ABC News' Seoul bureau, contributing to coverage of major Asia-Pacific events.
Banks get creative with deposit products as market volatility sends stock investors back to savings
A loan counter at a commercial bank in Seoul / Yonhap
By Park Han-sol
Korean banks are rolling out a wave of themed deposit products as they compete to lure retail money back from the stock market amid heightened volatility, while also shoring up funding ahead of further interest rate hikes, according to industry officials, Tuesday.
The benchmark KOSPI has swung wildly in recent sessions. After tumbling 17.2 percent over three trading days from July 28-30, the index posted a record one-day rebound of 17.9 percent on Friday. It has since traded in the 6,100 to 6,200 range.
The market’s sharp swings have prompted many retail investors to move money from equities back into safer assets. As of July 29, outstanding time deposits at the country’s five largest lenders — KB Kookmin, Shinhan, Hana, Woori and NH NongHyup — stood at 973.5 trillion won ($680.8 billion), up by more than 24 trillion won from a month earlier.
For banks, the influx comes at an opportune time. Encouraging customers to lock away cash now allows lenders to secure a stable source of funding before any additional rate hikes from the Bank of Korea make raising deposits more expensive.
Woori Bank is among those trying to stand out. Ahead of Korea’s Aug. 15 Liberation Day, it introduced a deposit marking the 150th anniversary of the birth of independence leader Kim Koo, for which UNESCO designated 2026 as an official commemorative year.
Customers who join the accompanying campaign to share their hopes for their future — inspired by Kim’s essay “My Desire” in his autobiography “The Diary of Baekbeom” — receive an additional 0.2 percentage point in interest, lifting the maximum annual rate to 3.6 percent.
Meanwhile, KB Kookmin Bank has introduced a “group buying” deposit with a total sales cap of 2 trillion won. Here, the interest rate rises as more customers subscribe, with depositors eligible to earn up to 3.30 percent annually on a 12-month term.
Regional lenders are joining the move as well.
Kwangju Bank’s latest offering links bonus interest to the performance of archer Oh Ye-jin, a member of the bank’s TenTen Archery Team, at the 2026 Aichi-Nagoya Asian Games. Customers can earn up to an additional 0.31 percentage point, which brings the maximum annual rate to 3.71 percent.