Bank of Korea to Supply 5 Trillion Won Ahead of Chuseok... Cash Demand Similar to Last Year

[Image source=Yonhap News]

[Asia Economy Reporter Kim Eun-byeol] Approximately 5 trillion won was released into the market ahead of the Chuseok holiday.

The Bank of Korea announced on the 29th that the net issuance amount of currency (issuance amount - redemption amount) supplied to financial institutions during the 10 business days before Chuseok (September 16-29) was 5.0155 trillion won.

The amount of money released ahead of Chuseok decreased by 0.5% compared to last year (5.0406 trillion won). Although there is a tendency to refrain from visiting hometowns due to the resurgence of COVID-19, the net issuance amount was similar to last year's level.

A Bank of Korea official stated, "This year, the Chuseok holiday period was longer than last year and the demand for end-of-month funds overlapped, but it seems that a large amount of reserve funds were secured in the first half of the year, and the reduction in interregional movement also had an effect."

By region, the net issuance amount increased significantly in the Jeju Headquarters (+62.6%) and Gangwon Headquarters (+25.7%), where many tourists gather, while it generally decreased in other regional headquarters such as the Bank of Korea Headquarters (-1.1%) and Daegu-Gyeongbuk Headquarters (-13.4%).

This content was produced with the assistance of AI translation services.