Deposits at South Korean banks surpassed the 1,000-trillion-won (US$899 billion) mark in the first half of 2013 for the first time amid a surge in the inflow of short-term funds, data showed Sunday.
The outstanding amount of deposits at local banks totaled 1,008 trillion won at end-June this year, up 1.8 percent from 990.2 trillion won tallied six months earlier, according to the data compiled by the Bank of Korea (BOK).
It marked the first time for the figure to surpass the 1,000-trillion-won mark since the bank started to compile such data in 1961. The number has posted on-year growth except for 1964 and 2004.
Households deposited 480 trillion won, accounting for 47.6 percent of the total, trailed by companies' 312.9 trillion won for 31 percent. Governmental and financial institutions accounted for 21.3 percent at 215.2 trillion won.
Market watchers, however, said outstanding bank deposits may drop below the 1,000-trillion-won mark in the second half as investors are looking for other investment vehicles amid the country's low interest rates.
"The number is estimated to have fallen below the 1,000-trillion-won mark in July," a BOK official said. "However, it will eventually gather ground again on the back of economic growth."
The central bank held the benchmark seven-day repo rate, dubbed the base rate, steady at 2.5 percent in August, saying Asia's fourth-largest economy continues to be on a moderate recovery track.
In May, the BOK made the first rate cut in seven months in an effort to support the government's drive to stimulate growth. The bank also slashed the rate in July and October last year. (Yonhap News)
