Seoul, Feb 13 : South Korea’s money supply rose for the 19th consecutive month in December, in line with an increase in short-term funds amid high market volatility, central bank data showed on Thursday.
The country’s M2, a key gauge of the money supply, stood at 4,183.5 trillion won ($2.87 trillion) in December, up 1 percent from the previous month, according to the preliminary data from the Bank of Korea (BOK).
The money supply has been on a constant increase since June 2023, reports Yonhap news agency.
On a year-on-year basis, the money supply advanced 6.9 percent in December, compared with a 6.4 percent on-year increase in November.
The M2 is a measure of the money supply that counts cash, demand deposits and other easily convertible financial instruments.
The increase came as demand deposits rose by 18.6 trillion won amid high volatility in the asset market, according to BOK officials.
Corporate funds needed to manage a financial ratio at year-end also led to an increase in demand deposits.
South Korea’s liquidity aggregate, the broadest measure of money supply, edged up 0.2 percent from a month earlier to stand at 7,106 trillion won in December, the data showed.
Meanwhile, South Korean stocks traded higher late Thursday morning, led by tech and auto gains amid hopes for an exemption from U.S. tariffs.
The benchmark Korea Composite Stock Price Index (KOSPI) added 22.03 points, or 0.86 percent, to 2,570.42 as of 11:20 a.m.
The index opened higher and had risen further on solid buying by institutional investors.
U.S. shares ended mixed Wednesday, as strong inflation data led to speculation that the Federal Reserve would delay interest rate cuts.
In Seoul, market bellwether Samsung Electronics added 0.18 per cent, and chip giant SK hynix surged 1.81 per cent.
Leading battery maker LG Energy Solution jumped 3.1 per cent. (With inputs from IANS)
