Money supply rises for 6th straight month amid strong stock market: BOK

Seoul, Nov 12 (IANS) South Korea's money supply increased for the sixth consecutive month in September, driven by an inflow of investment-related funds amid a strong domestic stock market, central bank data showed on Wednesday.

The country's M2, a key measure of the money supply, stood at 4,430.5 trillion won (US$3.02 trillion) in September, up 0.7 percent from the previous month, according to preliminary data from the Bank of Korea (BOK), reports Yonhap news agency.

The figure has been on a constant increase since April. Compared with a year earlier, the figure jumped 8.5 percent in September.

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

In detail, investment trust funds increased 5.7 trillion won in September from the previous month, while demand deposits rose 9.5 trillion won, more than doubling from the 3.7 trillion-won increase recorded in August.

Installment and savings deposits with free withdrawals also went up by 6.8 trillion won.

"The increase reflected the balance sheet management at the end of the quarter and the inflow of funds waiting for investment opportunities," a BOK official said.

An official inspects 50,000 won banknotes at Hana Bank's counterfeit response center in Seoul, in this file photo taken July 17, 2024. (Yonhap)

Meanwhile, the Ministry of Trade, Industry and Resources held its first policy consultation meeting under the administration of President Lee Jae Myung on Wednesday, discussing South Korea's key economic agenda items, such as the artificial intelligence (AI) transformation of the manufacturing sector and strengthening trade competitiveness, with government officials and experts.

The meeting also covered discussions on Korea's recent tariff agreement with the United States and a strategy on advancing the country's semiconductor industry, according to the ministry.

The meeting was attended by 26 experts on AI, economic security, finance, trade and resources, along with many government officials.

"As uncertainties surrounding our economy have eased to some extent with the trade deal with the U.S., we now have to concentrate all our efforts on strengthening the fundamental competitiveness of our industries," Industry Minister Kim Jung-kwan was quoted as saying in the meeting.

—IANS

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