For a year from the end of February of last year of Corona, Korean and US stock markets rebounded in a V-shape for debt investment, and households' surplus funds have doubled.
At the end of February, the balance of credit loans in the U.S. rose 49% annually to 814 billion dollars (910 trillion won), and Korea mobilized 17.3 trillion won in household debt over the past year, investing 80 trillion won in equity securities and investment funds in 2019. It was from -3.8 trillion won to 76 trillion won.
Bank of Korea's financial statistics last year accounted for a quarter of households investing 83 trillion won in domestic and overseas stocks, and 20 1.1 trillion won in overseas stocks, excluding investment funds.
Households' stock market investment was 63.2 trillion won, including investment shares (domestic stocks), and 173 trillion won in borrowings, borrowing 177.1 trillion won from financial institutions.
The Walls Lit Journal reported on the 7th that the Fed's aggressive monetary stimulus and credit investment (debt investment) contributed to the surge in the S&P 500 index of the US stock market last year by 53%.
WSJ diagnosed that the'rally of all investment products' that started last year had a side that was encouraged by debt investment, and that stock-backed credit loans have grown the most since 2007, just before the collapse of the bubble at the time of the financial crisis.
For Korean households, deposits increased by 42.4 trillion won last year, the largest ever, and 83.3 trillion won was mobilized to invest in the stock market, and debt investment of 173 trillion won seems to have contributed to the stock market and real estate surge.
Surplus funds (net fund management) for households (including non-profit organizations) surged 100 trillion won in the past year to 199.2 trillion won, which is 2.1 times that of 2019 (92 trillion won).
The surplus fund (net fund management amount) is the operating fund minus the financing, and the Bank of Korea revealed that the net fund management amount of'households' (individuals, private businesses, non-profit organizations) last year was 192.1 trillion won. The stock input amounted to 20 trillion won, exceeding a quarter of debt investment.
Foreign exchange reserves amounted to $461.3 billion, a decrease of $1.43 billion from the end of February ($45.66 billion), and the Bank of Korea announced on the 5th that "the dollar-denominated amount of foreign currency assets decreased due to the strong US dollar."
“Foreign currency deposits” from overseas stock investment increased in a row last year, and the balance of foreign currency deposits in March was $90 billion, an increase of $650 million from February.
In March of last year, during the early days of the coronavirus, Samsung Securities issued a “V rebound” report, followed by the Blue House, followed by a “V rebound,” followed by Donghak ants and Seohak ants.