Households' spare cash in Korea neared 270 trillion won last year, hitting a record high. A sharp drop in apartment move-ins significantly reduced funding through mortgage loan borrowing.
According to the "2025 financial accounts (preliminary)" released by the Bank of Korea on the 9th, the net funds operated by households and nonprofit institutions totaled 269.7 trillion won, up 54.2 trillion won from a year earlier. This is the highest level since the compilation of statistics in 2009.
Net funds operated refers to the amount obtained by subtracting fundraising, such as loans from financial institutions, from funds operated through deposits, bonds, insurance, and pension reserves, meaning surplus funds that an economic entity can use. If fundraising exceeds fund operation and spare cash turns negative (-), it is expressed as net fundraising.
Kim Yong-hyun, Head of Team of the Financial Accounts Team at the Economic Statistics Department 1, said, "The scale of net funds operated expanded due to an increase in surplus funds driven by income growth outpacing expenditure growth and a decrease in new apartment move-ins."
According to the Ministry of Data and Statistics (MODS), the household income growth rate expanded to 3.5% last year from 3.3% in 2024, while the expenditure growth rate shrank to 2.2% from 3%. During this period, nationwide new apartment move-ins decreased from 363,000 households to 279,000 households. It is the first time in four years since 2021 (293,000 households) that nationwide move-ins fell into the 200,000 range.
Households and nonprofit institutions operated 342.4 trillion won in funds, up 93.6 trillion won from a year earlier. Fueled by a stock investment boom, funds operated in equity securities and investment funds increased by 64 trillion won, leading the growth. Insurance and pension reserves rose by 41 trillion won, and deposits at financial institutions increased by 17.8 trillion won. Fundraising amounted to 72.7 trillion won, roughly double the previous year's 33.3 trillion won as borrowing from deposit-taking institutions grew.
Corporations (nonfinancial) were in a net fundraising position, with fundraising exceeding fund operation. Last year's net fundraising amounted to 34.2 trillion won, sharply down from 77.5 trillion won the year before. Robust semiconductor exports boosted corporate net profits, while growing domestic and external uncertainty significantly slowed the pace of investment growth.
Funds operated surged to 213.2 trillion won, up 126.4 trillion won from 86.8 trillion won a year earlier. Deposits at financial institutions and funds operated in equity securities and investment funds increased by 44.6 trillion won and 44.2 trillion won, respectively, driving the rise. Fundraising, led by direct financing through bond and stock issuance, totaled 247.4 trillion won, up 83.2 trillion won from a year earlier.
The general government's net fundraising amounted to 52.6 trillion won, expanding from 36.1 trillion won a year earlier. This is also the highest since the compilation of statistics. The previous peak was 48.7 trillion won in 2020, when COVID-19 spread. Funds operated increased by 31.3 trillion won, centered on equity securities and investment funds, while fundraising rose by 77.5 trillion won, centered on Government Bonds. Government Bonds issuance increased due to higher government expenditure following two supplementary budgets last year.
The domestic sector's net funds operated, combining households, corporations, and the government, recorded 158.2 trillion won last year. This was an expansion of 41.6 trillion won from 116.6 trillion won the year before.
As of the end of last year, Korea's financial assets in the nonfinancial sector (households, corporations, and the government) totaled 1 quadrillion 3986.1 trillion won, up 1656.1 trillion won from a year earlier. Financial liabilities rose by 330.2 trillion won to 8101.2 trillion won. Net financial worth in the nonfinancial sector increased by 1325.9 trillion won to 5884.9 trillion won. The debt-to-assets ratio stood at 1.73 times, up from 1.59 times a year earlier.
At the end of last year, the household debt-to-nominal gross domestic product (GDP) ratio was 88.6%, down 1 percentage point from 89.6% at the end of 2024. This is the lowest level since the end of 2019 (89.6%). Compared with the previous third quarter of 2025 (89.3%), it fell 0.7 percentage point. Kim, the Head of Team, said, "With the real estate measures on Jun. 27 and Oct. 15 implemented last year and phase 3 of the stress debt service ratio (DSR) enforced, the household debt growth rate fell short of the nominal GDP growth rate."