Data from the Bank of Korea (BOK) showed that the amount of money circulating in South Korea rose in June after three months of decline, due to the central bank’s tightening policy.
The M2, a measure of money supply that includes cash, demand deposits, and other easily convertible financial instruments, was at 3,803.3 trillion won (US$2.88 trillion). This was a 0.5 percent increase from the previous month.
The BOK has been implementing a restrictive policy mode, with seven consecutive hikes in borrowing costs from April 2022 to January 2023, in order to manage the high inflation rate in the fourth-largest economy in Asia.
In June, the central bank held its key interest rate at 3.5 percent for the fourth consecutive time.