Households' excess funds fall in Q3 amid growing housing purchases
An apartment construction site in Seoul / Yonhap
Excess funds held by Korean households fell in the third quarter of 2024 from the previous quarter due mainly to a surge in their housing purchases, central bank data showed Tuesday.
Net financial funds — the value of financial assets minus financial liabilities — held by local households and nonprofit organizations serving households amounted to 37.7 trillion won ($23.18 billion) as of end-September, down from 41.2 trillion won three months earlier, according to preliminary data from the Bank of Korea (BOK).
Excess funds refer to the volume of money that remains on the balance sheets of households after people manage available funds via deposits, stock investments and other means.
"Despite an increase in household income, demand for new housing rose markedly in the third quarter, which led to the fall in the excess funds," a BOK official said.
The number of apartment purchases by individuals came to 72,000 in the July-September period, compared with 53,000 reported in the second quarter, according to data compiled by the Korea Real Estate Board. (Yonhap)