South Korea's M2 Money Supply Grows 0.9% in August on Short-Term Deposits

According to the Bank of Korea, the country's M2 money supply reached an average of 4,266.8 trillion won in August, up 0.9% from the previous month. The increase of 39.1 trillion won was largely fueled by a rise in short-term deposits and money trusts maturing in less than two years. Sector-by-sector data reveal that non-financial corporations added 33.9 trillion won in liquidity, whereas households and nonprofit groups together grew by only 0.3 trillion won.

Financial institutions contributed an additional 1 trillion won to the total. The upward trend in M2 has been steady since November, reflecting ongoing expansion in readily convertible financial assets.