S. Korean households' excess funds grow in Q2 on worry about COVID-19
Source: Xinhua | 2020-10-08
South Korean households' excess funds grew in the second quarter amid worry about the economic fallout from the COVID-19 outbreak, central bank data showed Wednesday.
Net financial funds, held by households and nonprofit organizations, reached 64 trillion won (55.3 billion U.S. dollars) during the April-June quarter, up from 24 trillion won (20.7 billion U.S. dollars) a year earlier, according to the Bank of Korea (BOK).
The net financial funds refer to the value of financial assets minus financial liabilities.
Households increased deposits and investments with excess funds during the quarter due to economic uncertainty from the COVID-19 pandemic.
The households-held financial assets reached a new high of 110.1 trillion won (95.2 billion U.S. dollars) in the second quarter, while financial liabilities amounted to 46.1 trillion won (39.9 billion U.S. dollars).
Non-financial companies borrowed a net 29.1 trillion won (25.2 billion U.S. dollars) worth of funds during the second quarter, up 13.8 trillion won (11.9 billion U.S. dollars) from a year earlier.
The companies-held financial liabilities reached 90.4 trillion won (78.1 billion U.S. dollars), while the financial assets amounted to 61.3 trillion won (52.9 billion U.S. dollars).
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