The turnover rate for demand deposits dropped to a near 9-year low in January, indicating that more people are choosing to keep their money in banks, rather than spend or invest.
Data from the Bank of Korea on Thursday showed January’s turnover rate sat at 21.2, the lowest since February 2007.
Lower turnover indicates fewer withdrawals, meaning consumers are holding on to their cash despite the central bank’s efforts to pump more money into the economy by keeping key rates at record lows.
After a cut to 1.5 percent in June last year, the BOK has refrained from further changes.
(khnews@heraldcorp.com)