September currency volume increased by 17.1 trillion won... Business decline for the first time in 11 months

Last September, call volume continued to increase for 11 months, but the amount of increase decreased. This is due to a decrease in corporate holdings.

According to the 'Money and Liquidity' statistics released by the Bank of Korea on the 13th, the average broad money supply (M2 standard, average balance) in September this year was 4283.9 trillion won, an increase of 17.1 trillion won (0.4%) from the previous month.

The increase has continued since November of last year. However, the increase decreased from 39.1 trillion won (0.9%) last month.

M2, a money supply indicator in a broad sense, includes short-term financial products that can be immediately converted into cash, such as money market funds (MMF), time deposits and savings of less than 2 years, certificates of deposit (CDs), repurchase agreements (RP), financial bonds of less than 2 years, and money trusts of less than 2 years, in addition to cash, demand deposits, and cash deposits (hereinafter referred to as M1).

Among these, other monetary products, mainly foreign currency deposits less than two years old, increased by 11.1 trillion won in one month due to the inflow of export proceeds from large corporations.

As interest rates rose, term deposits of less than two years also increased by 8.2 trillion won during the same period.

On the other hand, money trusts less than 2 years old decreased by 10 trillion won due to the influence of semiconductor companies' shareholder returns and interim corporate tax prepayment.

By economic entity, households and non-profit organizations (+12.6 trillion won) and other financial institutions (+5.2 trillion won) increased. Households and non-profit organizations recorded the largest increase in 1 year and 10 months since November 2024 (+15.8 trillion won) as overall deposit products increased.

On the other hand, non-financial companies (-3.3 trillion won) have decreased in 11 months since October 2025 (-2 trillion won), focusing on money trusts and MMFs that are less than 2 years old. This is mainly due to the increase in demand for funds from semiconductor companies in September.

The money volume M1 (KRW 1,355.2 trillion) in a narrow sense, which includes only cash, demand deposits, and deposit and withdrawal deposits, decreased by 0.2% from the previous month. This is the third consecutive month of decline following July and August.