The money supply held by South Korean households and nonprofit organizations out of the total national balance grew in the first half of the year.
Bank of Korea data on Saturday showed households and nonprofits held 1.3 quadrillion won out of the total M2 balance of 2.4 quadrillion won as of late June. M2 money supply includes cash and short-term financial products such as bank deposits that can be easily converted into cash.
Households' M2 holdings grew 3.5 percent or over 44 trillion won from January to June, compared to the 37 trillion won increase recorded during the second half of 2016. The first-half increase is the largest since 2009.
The growth in households' money supply is attributed to ample liquidity in the markets resulting from the continued low interest rate trend. Also, higher income households are believed to have increased their cash savings.
A BOK official said that among the M2 holdings of households, fixed term or installment deposits with a maturity of less than two years, and regular bank deposits have notably increased.