[THE INVESTOR] The money supply in South Korea rose more than 7 percent on-year in August, according to the central bank on Oct. 12.

The nation’s M2 totaled 2,377 trillion won (US$2.10 trillion) in August, up 7.2 percent from a year earlier. It marks a 1.2 percent rise from July, according to the Bank of Korea.

M2 is a measure of the money supply counting the currency in circulation, including bank debentures and deposits with a maturity of less than two years, along with stock investments. It‘s a key economic indicator closely monitored by the authorities.

The BOK attributed the increase in money supply to a rise in deposits, short-term money in trusts and money market funds.

As of the end of August, the amount in demand deposit accounts rose 3.9 trillion won from a month earlier, while money held in money market funds increased 4.4 trillion won over the cited period.

(theinvestor@heraldcorp.com)