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Excess household funds contract sharply in Q2

Published: 16 Oct. 2025, 13:26

Apartments are seen from Mount Namsan in central Seoul on Sept. 18. [YONHAP]

Excess funds held by Korean households fell sharply in the second quarter mainly due to declining income and increased spending on housing, according to central bank data released Thursday.

Net financial funds — the value of financial assets minus financial liabilities — held by local households and nonprofit organizations had amounted to 51.3 trillion won ($36.16 billion) as of end-June, down from a record 92.9 trillion won three months earlier, according to preliminary data from the Bank of Korea (BOK).

This marked the largest decline since the second quarter of 2024.

Excess funds refer to the volume of money that remains on the balance sheets of households after people manage available funds via deposits, stock investments and other means.

“As the bonus effect from the first quarter disappeared, household income decreased, while investment in real assets, such as apartments, has risen,” BOK official Kim Yong-hyun told a press briefing.

Nonfinancial corporations raised 3.5 trillion won in net funds during the second quarter, down 15.2 trillion won from the previous quarter, the data showed.

Yonhap