Money supply continues to rise in June on gains in deposits

South Korea's money supply continued to grow in June, according to data released by the Bank of Korea on Friday. The country's M2, a key indicator of money supply, averaged 4,213 trillion won (US$2.97 trillion) for the month, marking a 0.7 percent increase or 29.4 trillion won compared to May. This trend of rising money supply has persisted since November.

The BOK attributed the growth to increases in short-term deposits and money market funds, which primarily invest in short-term products. In June, short-term deposits saw a rise of 45.7 trillion won, while money market funds experienced a 5.4 trillion won increase. On the other hand, liquidity held by households and nonprofit organizations decreased by 19.8 trillion won.

The data also revealed that liquidity in nonfinancial corporations rose by 45.7 trillion won in June.