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Money supply bounces back on corporate, household deposits rise: BOK

Published: 13 Feb. 2026, 14:42

Officials distribute cash for the Chuseok holiday at the Bank of Korea's currency storage facility in central Seoul, on Sept. 30, 2025. [NEWS1]

Korea's money supply rose in December from a month earlier, driven by increases in corporate and household deposits in both foreign and local currencies, central bank data showed Friday.

The country's M2, a key gauge of the money supply, stood at an average of 4,080.7 trillion won ($2.83 trillion) in December, up 0.6 percent from the previous month, according to the preliminary data from the Bank of Korea (BOK).

The figure had risen steadily since April before posting its first on-month decline in November.

The M2 is a measure of the money supply that counts cash, demand deposits and other easily convertible financial instruments.

"The increase was largely driven by foreign currency deposits held by corporations and households, such as banks' U.S. dollar deposits. Export and import firms, in particular, increased their trade-related fund deposits," a BOK official said.

"Demand deposits also rose as companies managed their year-end financial ratios, while households saw an inflow of surplus funds, including bonuses," he added.

By entity, liquidity increased by 12.9 trillion won among companies, 10.4 trillion won among households and nonprofit organizations, and 2.3 trillion won among other financial institutions, the data showed.

Yonhap