Household Financial Assets... Stocks Decrease While Savings Deposits Increase

[Asia Economy Reporter Jang Sehee] In the third quarter of last year, as the stock market showed weakness, the proportion of stocks in household financial assets also decreased. On the other hand, savings deposits increased.

According to the fund circulation (provisional) statistics released by the Bank of Korea on the 6th, the net fund operation amount of households (including self-employed individuals) and non-profit organizations as of the third quarter of last year was recorded at 35 trillion won. Compared to the third quarter of 2020 (29.8 trillion won), it increased by 5.2 trillion won in one year. The increase in household net fund operation amount in the third quarter was influenced by the national support funds.

Breaking down fund operations by sector, households' domestic equity securities and investment funds (24.7 trillion won) decreased compared to the second quarter (30 trillion won), but increased by 2 trillion won compared to the third quarter of the previous year (22.7 trillion won).

Excluding investment funds, households operated 28.5 trillion won in domestic and foreign stocks in the third quarter. They acquired 26.1 trillion won worth of resident-issued stocks and equity shares (domestic stocks) and 2.04 trillion won worth of overseas stocks.

The acquisition amount of domestic stocks noticeably decreased compared to the first quarter (36.5 trillion won) and second quarter (29.2 trillion won) of last year. The acquisition amount of overseas stocks was also less than in the first quarter (12.5 trillion won) and second quarter (2.8 trillion won). As a result, the proportion of stocks and investment funds in household financial assets fell to 21.0% in the third quarter. Meanwhile, the proportion of deposits (40.7%) increased compared to the second quarter (40.5%).

For non-financial corporate enterprises, the net borrowing scale in the third quarter was 23.4 trillion won, up from 16.1 trillion won a year earlier.

The general government's net fund operation amount in the third quarter of last year was 5.4 trillion won, which increased compared to the second quarter (4.5 trillion won) but decreased compared to the third quarter of the previous year (10.6 trillion won).

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