Money Moves on Low Interest Rates: From Banks to Stocks and Real Estate [3-Minute Brief]

[At a Glance]
1. Interest rate cuts... About 20 trillion KRW has flowed out of banks since March
2. Possibility of Commercial Act amendment increases... Directors and Officers Liability Insurance (D&O) on the rise
3. Shipbuilding, defense, and nuclear power-related ETFs take the lead in the domestic stock market

MARKET INDEX : Year to date

○On the 19th (local time), "Juneteenth" (Emancipation Day)... U.S. New York Stock Exchange closed

○Bitcoin fluctuating within the $100,000 range

○Speculation rises that the U.S. may join Israel in an attack on Iran... Exchange rates soar

Top3 NEWS

■ "Interest rates are no longer attractive"... Massive funds flow from banks to the stock and real estate markets

○Since the end of March, 20 trillion KRW has flowed out of banks
○Stock market investor deposits surpassed 60 trillion KRW this month
○Credit loans increased by more than 1 trillion KRW this month

■ The only defense in the 'Commercial Act Amendment' is 'Directors and Officers Liability Insurance'... Contracts have increased eightfold in 10 years

○Corporate attention on D&O due to the Serious Accidents Punishment Act, the Duty Structure Act, and the Commercial Act Amendment
○KB Financial Group has the largest coverage limit for D&O among financial companies at 95 billion KRW... Annual premiums alone reach 10 billion KRW
○Both listed and unlisted companies are rapidly subscribing to D&O

■ ETF market enters the era of "Shipbuilding, Defense, Nuclear Power"

○ETFs related to shipbuilding, defense, and nuclear power are experiencing rapid growth
○High returns are attracting large amounts of capital
○New ETFs investing in Chinese AI-related industries have been launched

Graphic News: Restructuring of small businesses progressing smoothly... The five major banks support about 60 billion KRW in debt adjustment for small businesses in just two months

○The Financial Services Commission plans to compile and announce the banks' performance before July

○Small Business 119+ provided 36.9 billion KRW in support in two months

○227 billion KRW in closure support refinancing loans handled

the Chart: Four major financial groups begin a fierce competition in the "nursing care business," led by life insurance companies

○Hana Life established a subsidiary, "Hana The Next Life Care"

○Woori Financial Group studied the Japanese nursing care business after acquiring Tongyang and ABL Life

○Early movers KB and Shinhan also made additional investments

Today's Key Schedule

○Domestic

On the 20th, GFC Life Science to be listed on KOSDAQ, final public offering price set at 15,300 KRW

06:00 Producer Price Index (MoM) (May)

○Overseas

08:30 Japan Core Consumer Price Index (YoY) (May), Domestic CPI (MoM) (May)

10:30 People's Bank of China (PBoC) Loan Prime Rate (June)

15:00 Germany Producer Price Index (MoM) (May)

17:00 European Central Bank Monthly Report

21:30 U.S. Philadelphia Fed Manufacturing Index (June), Philadelphia Fed Employment Index (June)

◇Weather at Lunch & Commute

○Lowest temperature 23°C (▲2°C) ｜Highest temperature: 25°C (▼8°C)
○Precipitation probability: 70% in the morning | 60% in the afternoon
○Fine dust: Moderate in the morning | Moderate in the afternoon

All you need in three minutes: essential, value-for-time economic news. Published daily at 8:00 a.m.