South Korean banks increased their issuance of certificates of deposit (CDs) in the final quarter of last year as growth in core deposits slowed, according to a report from Risk.net published February 20, 2026.
The shift comes as interest rates have remained stable and efforts to attract demand deposits have lost momentum. Hana Financial Group experienced the most significant quarter-over-quarter increase in marketable deposits – which include CDs – with a rise of 58.1% to 21.1 trillion won ($14.6 billion). Simultaneously, the bank’s core deposits decreased by 2.1% over the same period.
The broader trend indicates a move towards marketable funding, which jumped 38% in the fourth quarter, reaching a four-year high, Risk.net reported. This suggests banks are increasingly relying on CDs to bolster their funding sources amid a challenging environment for attracting traditional deposits.
The change in strategy reflects the current economic climate in South Korea, where stable interest rates and shifting consumer preferences are impacting deposit patterns. Banks are adapting to these conditions by actively promoting CDs as a means of securing funding.
