October Transaction Volume Soars to 38 Trillion... Deposits and Savings Increase by 22.6 Trillion Due to Support Funds

[Sejong=Asia Economy Reporter Son Seonhee] Due to the impact of disaster relief fund payments, deposits and savings increased, resulting in a 38 trillion won rise in the money supply last October. In particular, the money supply in deposits and savings increased by 22.6 trillion won due to the payment of COVID-19 disaster relief funds.

According to the 'Money and Liquidity' statistics released by the Bank of Korea on the 15th, the average money supply (broad money) in October was 3,550.6 trillion won, an increase of 38 trillion won (1.1%) compared to September. Compared to the same month a year ago, it increased by 12.4%.

The broadly used broad money includes cash, demand deposits, and current account deposits (all considered narrow money), as well as money market funds (MMF), fixed deposits and savings deposits under two years, beneficiary certificates, marketable securities, financial bonds under two years, money trusts, and other monetary financial products.

By financial product, current account savings deposits increased by 11.4 trillion won, fixed deposits and savings by 11.2 trillion won, and financial bonds by 3.6 trillion won, among others.

By economic agent, households and non-profit organizations increased by 18.3 trillion won, and other financial institutions by 10.4 trillion won. The increase in household money supply was largely due to the payment of COVID-19 disaster relief funds in October. The increase in money supply for other financial institutions was explained by the Bank of Korea as being due to the larger scale of government treasury surplus deposits.

On the other hand, corporations decreased by 800 billion won, which is analyzed to be due to value-added tax payments and expanded overseas investments.

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