South Korea’s broad money supply, or M2, rose by 12.7 trillion Korean won, or 0.3%, in July to an average 4,225.6 trillion won, according to the Bank of Korea’s Money and Liquidity report released on the 15th. The increase was less than half June’s 29.4 trillion won gain, although M2 expanded for a ninth consecutive month and rose 5.8% year over year. The shift reflected funds moving from demand-access savings deposits and money market funds into time and installment savings deposits, money trusts and short-term financial debentures as interest rates rose. Non-financial corporations increased their money holdings by 20.6 trillion won, while households and nonprofit organizations reduced theirs by 11.6 trillion won for a second consecutive month. M1, or narrow money, fell 2.2% to 1,372.5 trillion won as demand-access savings deposits and demand deposits declined.