Excess funds held by South Korean households increased in the third quarter, reaching 58 trillion won, up from 51.3 trillion won in the previous quarter. This rise was primarily driven by higher income levels and stricter lending rules, according to the Bank of Korea. Fund investment grew by 1.9 trillion won to 78.8 trillion won, while fundraising decreased from 25.6 trillion won to 20.7 trillion won during the same period.
Household balance sheets showed a surplus of money after allocating funds to deposits and other financial assets. The growth in fund investment, including deposits, was attributed to income growth outpacing spending. The government’s stimulus measures from the previous year also played a role in boosting income levels. However, borrowing decreased as lending regulations were tightened in response to escalating home prices.
Nonfinancial corporations saw a significant increase in net funds during the third quarter, rising to 19.5 trillion won from 3.5 trillion won in the previous quarter. Additionally, the government shifted from net borrowing to net lending, recording 5.9 trillion won in the third quarter. Meanwhile, Seoul shares continued their upward trend, with technology stocks gaining momentum following positive quarterly earnings estimates from Samsung Electronics.
The benchmark Korea Composite Stock Price Index (KOSPI) climbed 1.05 percent to 4,599.02, with the possibility of closing above 4,600. Tech, defence, and shipbuilding stocks led the market gains, while U.S. stocks closed mixed. Retail investors bought a net 356.96 billion won worth of stocks, offsetting net selling by institutions and foreigners.
