SEOUL, Oct. 16 (Xinhua) -- South Korean households' surplus fund turned downward in four quarters due to lower income and higher investment in real estate, central bank data showed Thursday.
The net surplus fund, or the value of financial assets minus financial debts possessed by households and non-profit organizations, dived 41.6 trillion won (22.1 billion U.S. dollars) to 51.3 trillion won (67.9 billion dollars) in the April-June quarter compared to the previous quarter, according to the Bank of Korea (BOK).
It marked the first reduction since the second quarter of last year on the back of lower household income and the expanded investment in real assets, especially apartments.
Financial assets, such as deposits and securities, dipped 24.3 trillion won (17.1 billion dollars) in the second quarter.
The deposit holdings decreased 15.2 trillion won (10.7 billion dollars), but the possession of insurance and pension grew 3.9 trillion won (2.7 billion dollars) during the quarter.
The holdings of equity securities and investment funds declined 11.4 trillion won (8.0 billion dollars).
Financial liabilities rose 17.4 trillion won (12.3 billion dollars) in the second quarter compared to the previous quarter.
It was attributed to strong demand for new homes with borrowed money.
The BOK cut its benchmark interest rate by 25 basis points in February and May after reducing it by the same basis points in October and November last year. ■
