South Korean firms' surplus cash reaches record level in Q2 amid chip export surge

Data from the Bank of Korea show that non-financial corporations in South Korea amassed net financial assets of 67.1 trillion won at the close of June, a dramatic increase from 20.8 trillion won three months prior and the highest quarterly total recorded since 2009. The surge is attributed to robust semiconductor export performance, which boosted corporate earnings. In contrast, households saw their net financial funds decline to 60.7 trillion won, driven by reduced incomes and higher spending on housing.

Total financial assets held by households and nonprofit groups rose to 6,930.2 trillion won, while their liabilities grew to 2,495.8 trillion won, cutting the household debt-to-GDP ratio to 81.1 percent from 85.3 percent. The asset-to-liability ratio for households stood at 2.78 percent. These figures highlight a widening gap between corporate cash reserves and household finances.