Skip to main content

South Korea's households and non-profit agencies

South Korea's households and non-profit agencies held the largest amount of excess funds in 2012, since data has been available, as heightened economic uncertainty curtailed their spending, the central bank said Monday.

The value of excess funds held by households and non-profit organizations amounted to 86.5 trillion won (US$ 77.6 billion) in 2012, up from 54.9 trillion won the previous year, according to the Bank of Korea (BOK).

The 2012 data marked the largest amount since 2003 when the BOK began to compile related data.

Excess funds refer to the volume of money that remains after people manage available funds via deposits and stock investments.

"The data means that economic uncertainty led more people to refrain from spending even though overall income growth improved from a year earlier," Jeong Yu-seong, the head of the BOK's flow of funds team, said at a press conference.

Jeong said that households and others increased the holding of such extra funds as the sluggish property market led them to be wary of buying homes and investing in real estate.

But the ratio of their financial assets against debt came in at 2.15 as of end-2012, up from 2.08 the previous year as income growth raised their capacity to repay debt.

Korea's household debt problems are cited as the main bugbear for policymakers as high household indebtedness crimps consumer spending, hurting the economic growth. Korea's household credit reached a record 959.4 trillion won as of end-2012.

Meanwhile, companies' shortages of funds eased in 2012 from the previous year, meaning that more companies are refraining from making facility investments amid the slowing economy, the BOK said.

Local firms' capital shortages amounted to 59.9 trillion won last year, compared with 76.9 trillion won in 2011.

The money that local firms gained through bank loans and debt sales amounted to 127.9 trillion won last year, down from 151.3 trillion won in 2011, indicating that weak facility investment curtailed their demand for bank loans, the central bank said.

Korea's facility investment remains weak as companies are delaying big capital spending amid heightened economic uncertainty.

Comments

Post a Comment

Popular posts from this blog

Buried Treasures in Bohol Philippines

Written by Joe Espiritu       Four persons died in a treasure hunting accident last week. They died for nothing. Many had lost their shirts in the venture, the propensity for Filipinos to get rich quick attribute to the treasure hunting mania. The sad part is that only the ignorant venture on the search, those in the know, being sure that nothing will come out of the effort would not think of investing money, time and effort – this time lives – in a fruitless enterprise.        There had been stories of people getting rich uncovering treasure troves in unlikely places. Most stories are false. Ancient graves of archeological and anthropological value had been desecrated by treasure hunters. They had found nothing. Those people may have struck it rich but not from some hidden riches. Contrary to what other people say, there are no buried treasures in Bohol . If there had been, they were unearthed years ago.         If one traces the history of this province from the first time the huma
Post a Comment
Read more

Davao Culinary Night

DAVAO CITY, Feb. 14, 2020 (PIA) -- The Davao Tourism Association (DATA) recently held the first-ever One Davao Culinary Night which featured indigenous inspired dishes concocted by its member chefs . Founded in 1974, the DATA is a group composed of stakeholders coming from tourism-related establishments in Davao Region. The One Davao Culinary Night at the Marco Polo Davao Ballroom on January 31 was held to coincide with the group’s belated 75th anniversary celebration. “What we really wanted to do is to define what is Davao cuisine. When we formed the DATA chef’s club composed of 10 chefs coming from our DATA restaurant members we were able to collaborate and learn from the immersion that we did with the two indigenous tribes we invited- the Kagan and the Tagabawa,” Gatchi Gatchalian, DATA president said. Gatchalian said they wanted the people to discover what Davao cuisine is, as people associate Davao cuisine to ihaw-ihaw (grilled specialties) and kinilaw (cerviche). Gatchalian
Post a Comment
Read more

Sourcing of Agricultural Products

DAVAO CITY, Feb. 19, 2020 -- The Department of Agrarian Reform (DAR) signed partnership agreements on Monday, February 17, 2020, with various government agencies and a private institution for the sourcing of agricultural products from agrarian reform beneficiaries (ARB) in this province. These institutions are the Bureau of Jail Management and Penology Region XI, Department of Health Region XI, Davao Regional Medical Center, Southern Philippines Medical Center, and Medical Mission Group Hospital which all agreed to assist in the government’s fight against hunger and poverty in the countryside under the Enhanced Partnership Against Hunger and Poverty program (EPAHP). Cabinet Secretary and EPAHP Committee Chairman Karlo B. Nograles said these partnerships work in two ways. It provides institutions with a steady supply of food items, such as rice, vegetables, root crops and other farm produce, while the farmers gain regular markets for their farm yields. “EPAHP is our government’s
Post a Comment
Read more