Corporations' excess funds hit record $50.1 billion in Q2 on robust chip exports

Excess funds held by Korean businesses hit an all-time high in the second quarter, as strong semiconductor exports boosted corporate earnings, central bank data showed on Wednesday.

Net financial funds — the value of financial assets minus financial liabilities — held by nonfinancial corporations totaled 67.1 trillion won ($50.1 billion) at the end of June, sharply up from 20.8 trillion won three months earlier, according to data from the Bank of Korea (BOK).

It marked the highest quarterly figure since the BOK began compiling such data in 2009.

Households’ net financial funds fell to 60.7 trillion won in the second quarter from 79.2 trillion won in the first quarter, partly due to a fall in income and more purchases of homes.

Financial assets held by the country’s households and nonprofit organizations totaled 6.93 quadrillion won at the end of June, up 513 trillion won from three months earlier.

Their debts rose by 28.2 trillion won from three months earlier to 2.5 quadrillion won over the cited period.

The ratio of financial assets to liabilities owned by households stood at 2.78 percent. That of household debt to GDP stood at 81.1 percent as of the end of June, down from 85.3 percent three months ago, the data showed.

Yonhap