Korea's money supply up 7.2% in June: BOK

Money supply in South Korea grew more than 7 percent on-year in June, largely due to a rise in household debt, the central bank said Wednesday.

The nation's "M2" totaled 2,335.5 trillion won ($2,135.4 billion) for the month, up 7.2 percent from a year earlier, according to the Bank of Korea. It marks a 0.7-percent rise from May.

M2 is a measure of money supply counting the currency in circulation, including bank debentures and deposits with a maturity of less than two years, along with stock investments. It's a key economic indicator closely monitored by the authorities.

The on-year money supply growth rate stood at 8.3 percent in February, 7.8 percent in March, 7 percent in April and 6.7 percent in May.

"The rate rebounded as household-led private borrowing expanded in June," Shin Seong-wook, director of the BOK's financial statistics team, said.

The BOK lowered the key interest rate from 1.5 percent to 1.25 percent in June, leading to a jump in household loans. (Yonhap)