fund flows-Q1 tally
Koreans' excess funds grow in Q1 on less borrowing
SEOUL, July 6 (Yonhap) -- Excess funds held by South Korean households and nonprofit agencies grew in the first quarter of this year as borrowing shrank amid rising interest rates, central bank data showed Wednesday.
Net financial funds -- the value of financial assets minus financial liabilities -- held by local households and nonprofit organizations amounted to 60.4 trillion won (US$46.2 billion) as of end-March, up from 51.1 trillion won a year earlier, according to the preliminary data from the Bank of Korea (BOK).
The funds also expanded compared with the previous quarter's 37.5 trillion won.
The increase came as borrowing contracted sharply amid rising interest rates.
Households and nonprofit organizations borrowed money worth 22.7 trillion won in the first quarter, down from 53 trillion won the previous year.
People appear to have become reluctant to take out loans as borrowing costs are on the rise in line with the central bank's rate hikes aimed at curbing inflation.
Households and nonprofit agencies managed a total of 83.2 trillion won in deposits, securities and other investment vehicles in the first quarter. This is down from the previous year's 104 trillion won.
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