Go to Contents Go to Navigation

Households' excess funds grow in Q3

All News 12:00 January 09, 2020

By Byun Duk-kun

SEOUL, Jan. 9 (Yonhap) -- Excess funds held by South Korean households and nonprofit organizations sharply rose from a year earlier in the third quarter of last year, central bank data showed Thursday, partly due to anti-speculation measures that apparently prevented excess funds from finding their way into the real estate market.

Net financial funds held by local households and nonprofit organizations came to 17.6 trillion won (US$15.1 billion) at the end of September, up from 12 trillion won tallied a year earlier, according to the data from the Bank of Korea (BOK).

The reading, however, marks a 25 percent drop from 23.5 trillion won tallied three months earlier. Households include small business owners.

The on-year increase in households' excess funds was partly attributed to a cut in real estate investment.

The incumbent government has been introducing a series of anti-speculation steps since its launch in May 2017 that included tougher regulations on home-backed loans and sharp increases in property taxes. Its latest measures, announced last month, included a complete ban on mortgages or home-backed loans for homes valued at more than 15 billion won.

In the July-September period, construction investment for residential buildings came to 25.1 trillion won, sharply down from 29.5 trillion won the same period a year earlier, according to the BOK.

Non-financial firms expanded their net borrowing to 18.9 trillion won as of end-September from 8.8 trillion won a year earlier and also from 17.6 trillion won tallied at end-June.

Excess funds held by the local government came to 16.6 trillion won, slightly down from 17.9 trillion won a year before but sharply up from 1.7 trillion won three months earlier.

bdk@yna.co.kr
(END)

HOME TOP
Send Feedback
How can we improve?
Thanks for your feedback!