SEOUL, Jan. 5 (Xinhua) -- South Korean households increased savings deposits in the third quarter of last year amid higher interest rates that reduced investment in stocks and properties, central bank data showed Thursday.
Net fund management by households and non-profit organizations, or investment in deposits and securities minus borrowing from financial institutions, came in at 26.5 trillion won (20.8 billion U.S. dollars) during the July-September quarter, according to the Bank of Korea (BOK).
It was down from 39.0 trillion won (30.7 billion dollars) in the prior quarter and 33.9 trillion won (26.6 billion dollars) a year earlier.
Savings deposits with a maturity of over one year surged to 37.0 trillion won (29.1 billion dollars) in the third quarter from 19.7 trillion won (15.5 billion dollars) a year earlier.
The BOK had raised its benchmark interest rate since August 2021 from a record low of 0.50 percent to 3.25 percent to counter inflation.
The management in equity securities and investment funds stood at 4.2 trillion won (3.3 billion dollars) in the third quarter, down from 24.6 trillion won (19.3 billion dollars) a year ago.
The combined fund management decreased to 37.6 trillion won (29.6 billion dollars) in the third quarter from 84.1 trillion won (66.1 billion dollars) a year earlier.
The total borrowing from financial institutions tumbled from 50.2 trillion won (40 billion dollars) to 11.0 trillion won (864.6 million dollars) in the cited period amid higher borrowing costs. ■
