The Bank of Korea (BOK) reported on Monday that overall money supply increased by 0.5% month-on-month and 7.5% year-on-year in January, signaling rising liquidity in the financial system. Cash and demand deposits also increased by 0.6% month-on-month and 5.9% year-on-year. Financial institutions’ liquidity rose by 0.4% from the previous month, while broad liquidity increased by 0.8%. Corporate liquidity holdings rose by $14.7 billion (21.2 trillion won), while household and nonprofit holdings increased by $2.7 billion (3.9 trillion won). The BOK highlighted that the liquidity increase reflects lower loan interest rates and increased capital availability.

The Financial Services Commission (FSC) reported