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Growth of S. Korea's money supply accelerates in May

All News 12:00 July 11, 2018

SEOUL, July 11 (Yonhap) -- The money supply in South Korea continued to grow at a fast clip in May on increasing corporate lending, central bank data showed Wednesday.

The country's M2 totaled 2,600.3 trillion won (US$2.32 trillion) in May, up 5.9 percent from 2,454.4 trillion won a year earlier, the Bank of Korea (BOK) said in a statement.

The 5.9 percent gain is slightly lower than the 10-month high of a 6.2 percent on-year increase tallied in February, but higher than last month's 5.7 percent.

The growth rate of the M2 had been on a steady decline since April last year but made a turnaround after hitting a four-year low of 4.6 percent in August. It has remained at a modestly high level of over 5 percent since the beginning of 2018.

From a month earlier, the money supply edged up 0.5 percent in May, the BOK added.

The central bank said increased corporate credit has led to a pickup in the money supply since the latter half of last year.

M2 is a measure of the money supply that counts the currency in circulation, including bank debentures and deposits with a maturity of less than two years, along with stock investments. It is a key economic indicator closely monitored by the authorities.

Growth of S. Korea's money supply accelerates in May - 1


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