Corporations' excess funds hit record high in Q2 on robust chip exports
Excess funds held by South Korean businesses hit an all-time high in the second quarter as strong semiconductor exports boosted corporate earnings, central bank data showed Wednesday. Net financial funds -- the value of financial assets minus financial liabilities -- held by non-financial corporations totaled 67.1 trillion won ($50.1 billion) at the end of June, sharply up from 20.8 trillion won…
South Korean businesses ended Q2 with record high excess funds, reaching 67.1 trillion won ($50.1 billion) at the end of June, according to Bank of Korea data released on Wednesday. This figure marks a significant increase from 20.8 trillion won three months earlier, setting an all-time high since the bank began tracking this data in 2009.
The surge in corporate earnings can be attributed to robust semiconductor exports, which boosted the overall financial health of non-financial corporations. In contrast, household net financial funds dropped to 60.7 trillion won in Q2 from 79.2 trillion won in Q1, partly due to declining incomes and increased home purchases. While households' financial assets rose by 513 trillion won to 6,930.2 trillion won, their debts increased by 28.2 trillion won to 2,495.8 trillion won over the same period. The ratio of financial assets to liabilities among households stood at 2.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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