South Korea's June M2 rises 0.7% as companies shift cash into MMFs and time deposits

South Korea's broad money supply M2 averaged 4,213 trillion won on a seasonally adjusted basis in June 2026, up 29.4 trillion won, or 0.7%, from May, as non-financial companies moved short-term idle cash into money market funds and time deposits. The Bank of Korea said annual M2 growth widened to 6.0% from 5.8% even as the monthly pace eased from 0.8% in May. MMFs rose 7.3 trillion won and time deposits with maturities under two years increased 7.1 trillion won, while corporate M2 holdings jumped 45.7 trillion won and household and nonprofit holdings fell 19.8 trillion won. The report also showed old M2, a legacy measure that still includes beneficiary certificates such as ETFs, rose 1.2% from a month earlier and 12.3% from a year earlier, with beneficiary certificates surging 64.5% year over year. Narrow money M1 rose 0.4%, financial institution liquidity Lf increased 1.0%, and broad liquidity L gained 0.8%.

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