Episode Description:
On the KOSPI's worst days, Koreans didn't sell — they borrowed to double down, and banks are now pulling levers.
On the market's worst single day, overdraft balances at Korea's five largest banks jumped 580 billion won — about 390 million dollars — and across crash days the daily increase averaged near 100 billion won, roughly 4.5 times the rise on up days, lifting the combined balance 4.5 trillion won — around 3 billion dollars — in two months. To rein in household credit, IBK froze new variable-rate mortgages across all branches. Small and mid-sized firm loan delinquencies hit 1 percent, an 11-year high, while large-company delinquencies rose to 0.27 percent as another Bank of Korea rate hike looms. Regulators are also eyeing Telegram's Wallet crypto service, launching in August without a licensed local operator.
Sources:
Bank Overdrafts Jump 580 Billion Won on KOSPI Crash Day — Seoul Economic Daily, July 23 2026
IBK Halts New Variable-Rate Mortgages to Curb Household Debt — Seoul Economic Daily, July 23 2026
About AI PRISM:
AI PRISM is Seoul Economic Daily's WAN-IFRA award-winning newsroom AI series, delivering Korean economic news adapted for global audiences. Episodes are produced with AI assistance and reviewed by a human editor.
Tags:
#BankOfKorea #HouseholdDebt #Delinquency #IBK #Mortgages #CryptoRegulation #Telegram #KOSPI #AIPRISM #SeoulEconomicDaily #WANIFRA
