S. Korean households’ surplus fund falls in Q2

SEOUL, Oct. 7 (Xinhua) — South Korean households’ surplus fund fell in the second quarter due to a sharp reduction in deposits, central bank data showed Monday.
The net surplus fund, or the value of financial assets minus financial debts possessed by households and non-profit organizations, came in at 41.2 trillion won (30.6 billion U.S. dollars) in the April-June quarter, down 36.4 trillion won compared to the previous quarter, according to the Bank of Korea (BOK).
The surplus fund swelled 47.8 trillion won during the January-March quarter.
Financial assets, such as deposits and securities, reduced 23.3 trillion won in the second quarter from three months earlier.
The deposit holdings tumbled 36.8 trillion won as higher housing demand led home buyers to withdraw savings, while the possession of insurance and pension added 3.5 trillion won.
The holdings of equity securities and investment fund grew 10.5 trillion won, but the possession of bonds was unchanged.
Financial liabilities expanded 13.2 trillion won in the second quarter compared with the previous quarter.
The expansion was attributed to strong demand to purchase new homes with borrowed money.
The BOK left its benchmark interest rate unchanged at 3.50 percent since January last year. (1 won equals 0.00074 USD) ■