The Bank of Korea said on the 7th that surplus funds held by corporations excluding financial institutions increased by 2.08 trillion won in the first quarter. It was the largest since the statistics were compiled in 2009, quadrupling the previous record of the first quarter of 2024 (580 billion won). Strong semiconductor exports improved results at large corporations such as Samsung Electronics and SK hynix.
According to the preliminary first-quarter flow of funds released by the Bank of Korea that day, net lending by domestic sectors was 8.43 trillion won, up 3.3 trillion won from the previous quarter (5.19 trillion won). Net lending refers to surplus funds available for use by economic agents. It is calculated as funds managed in deposits, bonds, insurance, and pension reserves minus funding such as loans from financial institutions.
Meanwhile, household equity securities and investment funds (stocks, exchange-traded funds, money market funds) increased by 6.14 trillion won in the first quarter. This was also the largest in 17 years since the statistics were compiled. As the KOSPI surged, more people invested in stocks.
Financial institution deposits came to 2.94 trillion won, more than doubling from the previous quarter (1.28 trillion won). Financial institution deposits consist of deposits and installment savings, as well as securities firm cash balances that pool idle funds for stock investing. As demand for stock investing expanded, financial institution deposits increased as well. A Bank of Korea official said, "Deposits fell sharply," and noted, "A MoneyMove into the stock investing institutional sector occurred."
Total funds managed, including equity securities and investment funds and financial institution deposits, were 13.7 trillion won. Net lending, which subtracts funding such as loans from that amount, was found to be 7.92 trillion won. The Bank of Korea said, "Household income increased due to inflows of year-start bonuses, and the number of new apartment move-ins decreased."