M2 Increases KRW32.1tn in July
The Bank of Korea announced on Sept. 14 that the volume of broad money (M2) increased 0.9 percent or 32.1 trillion won in July this year to reach 3,443.9 trillion won and the volume increased 11.4 percent year on year that month whereas the rate of year-on-year increase was 10.9 percent in June this year.
In July, the volume considerably increased in the household and enterprise sectors alike. Especially, companies increased their direct financing, such as corporate bond issuance and capital increase based on additional share issuance, as financing conditions improved. The volume in this sector increased 11.1 trillion won in July after having increased by 7.9 trillion won in the previous month. In addition, loans increased with non-large companies benefiting from more government policies.
The broad money of households and nonprofit organizations increased 8.2 trillion won in July, when their loan demand continued to be generated with regard to housing transactions and so on. The broad money of other financial institutions, such as insurers and securities companies, increased 7.9 trillion won.
The volume of narrow money reached 1,296 trillion won, up 1.1 percent from the previous month and up 20.5 percent from a year ago. The volume showed a rapid increase for more than a year, which means a lot of floating money is around asset markets.