Key facts
- South Korea's M2 money supply rose 0.8% in May, the fastest pace in nine months.
- The total M2 stood at 4,184.4 trillion won (US$2.81 trillion) in May.
- The increase was driven by gains in short-term deposits and money market funds.
- Liquidity increased by 30.1 trillion won among non-financial corporations.
- Liquidity held by households and nonprofit organizations fell by 19 trillion won.
South Korea's money supply, measured by M2, experienced its sharpest monthly increase in nine months during May, reaching an average of 4,184.4 trillion won (US$2.81 trillion). This represents a 0.8% rise, or 32.2 trillion won, from the previous month, according to preliminary data from the Bank of Korea.
The growth in May surpassed the increase seen in August of the prior year, which recorded a 44.5 trillion won rise. The M2 figure has shown a consistent upward trend since November.
The central bank attributed the May increase to a rise in short-term deposits and money market funds, which benefited from a rally in the local stock market. Liquidity expanded by 30.1 trillion won among non-financial corporations and by 11.8 trillion won among financial institutions. Conversely, households and nonprofit organizations saw their liquidity decrease by 19 trillion won.