Bank of Korea reports broad-money growth in June

The Bank of Korea said in a release on the 14th that M2, a broad money measure, rose 0.7 percent from May to 4,213.0 trillion won in June on a seasonally adjusted basis, as money market funds and time deposits with maturities under two years increased.

M2's year-on-year growth rate, calculated from unadjusted data, accelerated to 6.0 percent from 5.8 percent in May. M1, the narrow money measure, increased 0.4 percent from May to an average 1,402.9 trillion won. Money market funds rose by 7.3 trillion won from May, while time and savings deposits maturing in less than two years grew by 7.1 trillion won.

Holdings by nonfinancial corporations grew by 45.7 trillion won from May, while households and nonprofit organizations reduced their holdings by 19.8 trillion won. Other financial institutions' holdings rose by 5.4 trillion won, while holdings by other sectors, including social security organizations and local governments, fell by 1.1 trillion won.

The June figures are preliminary and will be finalized next month, the central bank said.