Money supply rises for 3rd month in Jan. on rising corporate deposits: BOK

Korea's money supply rose for the third consecutive month in January, driven by increases in exporters' foreign currency deposits and short-term funds awaiting investment, central bank data showed Friday.

The country's M2, a key gauge of the money supply, stood at an average of 4,108.9 trillion won ($2.76 trillion) in January, up 0.7 percent from a month earlier, according to the preliminary data from the Bank of Korea (BOK).

The figure rebounded in November following a decline a month earlier and extended the increase for the third consecutive month in January.

M2 is a measure of the money supply that includes cash, demand deposits and other easily convertible financial instruments.

"The increase was mainly driven by foreign currency deposits held by companies and households, including U.S. dollar deposits by exporters," Choi Yoo-jin, chief of the BOK's financial statistics team, said. "Demand deposits also rose as funds awaiting investment expanded amid a strong stock market."

By entity, liquidity increased by 18.9 trillion won among non-financial corporations, 15.2 trillion won among financial institutions, and 1.9 trillion won among households and nonprofit organizations, the data showed.