What caused South Korea’s M2 money supply to increase in August?

The increase was driven by growth in short-term deposits and money trusts with maturities of less than two years. M2 covers cash, demand deposits and other financial instruments that are easily convertible into cash.

How much did corporate liquidity increase in South Korea in August?

Liquidity held by nonfinancial corporations increased by 33.9 trillion won in August. Liquidity held by financial institutions rose by 1 trillion won, while that of households and nonprofit organizations increased by 0.3 trillion won.

How much did South Korea’s M2 money supply rise in August?

Average M2 stood at 4,266.8 trillion won, an increase of 39.1 trillion won, or 0.9 percent, from July. The Bank of Korea said the measure had risen steadily since November.

Money supply continues to rise in Aug. on short-term deposits

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Summary

South Korea’s money supply increased in August from a month earlier, driven by short-term deposits and money trusts. Average M2 reached 4,266.8 trillion won in August, up 0.9 percent, or 39.1 trillion won. The Bank of Korea said M2 has risen steadily since November, while liquidity held by nonfinancial corporations recorded the largest sectoral increase.

Key Facts

M2 includes cash, demand deposits and other financial instruments that can be readily converted into cash.
Short-term deposits and money trusts with maturities of less than two years increased in August.
Liquidity held by nonfinancial corporations rose by 33.9 trillion won.
Liquidity held by households and nonprofit organizations increased by 0.3 trillion won, while financial institutions’ liquidity rose by 1 trillion won.

By Yonhap

Published Oct 15, 2026 12:37 pm KST

An employee sorts 50,000-won banknotes at Hana Bank in Seoul, Jan. 7, 2022. Yonhap

Korea's money supply continued to rise in August from a month earlier, driven by increases in short-term deposits and money trusts, central bank data showed Thursday.

The country's M2, a key gauge of the money supply, stood at an average of 4,266.8 trillion won ($3.18 trillion) in August, up 0.9 percent, or 39.1 trillion won, from a month earlier, according to preliminary data from the Bank of Korea (BOK).

The figure has risen steadily since November.

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

The BOK said short-term deposits and money trusts with maturities of less than two years increased in August.

By sector, liquidity held by nonfinancial corporations increased by 33.9 trillion won, while liquidity held by households and nonprofit organizations rose by 0.3 trillion won, the data showed. Liquidity held by financial institutions also moved up by 1 trillion won.

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