South Korea Corporate Deposits Plummet
World Economy

South Korea Corporate Deposits Plummet

Corporate deposits held by South Korean banks decreased by the largest amount in the first three months of the year, central bank data showed Saturday, as businesses are moving to expand investment amid an upturn in Asia’s fourth-largest economy.
Total bank savings by local businesses reached 367.5 trillion won ($327.4 billion) as of end-March, down 15.9 trillion won, or 4.2% from three months earlier, according to the data compiled by the Bank of Korea, Yonhap reported.
It is the largest one-quarter decline in history, outnumbering the earlier record of 11.3 trillion won tallied in the first quarter of 2006. Meanwhile, household deposits at banks rose 1.1% on-quarter to 587.2 trillion won.
The sharp fall in corporate deposits came after years-long stagnant investment and employment due to a protracted slump in the South Korean economy.
In 2016, companies saved 383.5 trillion won, up 35.4 trillion won from a year earlier, marking the fastest on-year gain since 2010, when corporate deposits went up 52.5 trillion won. But from the beginning of 2017, Asia’s fourth-largest economy showed some clear signs of recovery, led by brisk exports and corporate investment.
South Korea’s exports, the key economic driver, rose for six months in a row since November last year thanks to recovered global trade. Investment by KOSPI- and KOSDAQ-listed companies jumped 25.9% on-year to 1.3 trillion won in the January-March period.
Also, overseas direct investment made by South Korean companies soared 30.2% to a record $10.71 billion in the first three months of the year. “It is partly because of increased investment spending by big-sized companies, resulting in a drop in corporate bank deposits,” said Cho Young-moo, a senior economist at LG Economic Research Institute.




Short URL : https://goo.gl/0juyMx
  1. https://goo.gl/965z2m
  • https://goo.gl/zQytqu
  • https://goo.gl/BjyMCr
  • https://goo.gl/J8okuZ
  • https://goo.gl/JE4ckD

You can also read ...

Big Data, Online Markets Can Lead to Higher Prices
Information technology is not just transforming markets; it is...
Liu He (L) and Steven Mnuchin after the joint statement to avoid a trade war.
With "minutes to midnight", the great US-China trade war...
Italy could set the stage for the bloc’s next crisis if it delivers on its tax-cutting and high-spending policies.
Capital investment in 24 of the EU’s 28 member states has...
Air India Sale Hangs in Balance
Uncertainty hangs over the Indian government's plans to sell...
A meeting of eurozone finance ministers is set for June 21.
Greece’s creditors have agreed a program of reforms as the...
Bangla Trade Deficit Doubles
Bangladesh’s trade deficit has almost doubled within 12 months...
Egypt Gets Bids for Power Plant
Egypt next week will announce the winning consortium to build...
Cumulative gross financing needs could amount  to $69.3 billion for 2018 for the six-nation group.
While public debt levels remain at manageable levels for most...

Add new comment

Read our comment policy before posting your viewpoints