The net financial assets held by individual Koreans reached a new record high in the third quarter on the back of a bullish stock market, the Bank of Korea said Tuesday. They rose W37.6 trillion from the second quarter to W1,205.4 trillion (US$1=W1,141).
Kim Sung-hwan of the central bank said rising stock prices bolstered the financial assets of individuals. Households, small private businesses and civilian nonprofit groups are included in the tally. As a result, the ratio of individual financial assets to debt rose to 2.34 times, the highest since the third quarter of 2007 when it stood at 2.35 times.
Meanwhile, loans from banks and other lenders by individuals in the third quarter amounted to W18.4 trillion, up W4.3 trillion from the second quarter, while investment in deposits, insurance products and securities decreased W11.2 trillion to W28.5 trillion. As a result, surplus capital, or invested capital minus loans, stood at W10.1 trillion, which was down from the second quarter.
"The reason for the decline in surplus capital is that consumption steadily increased amid the economic recovery," Kim said.