Seoul: Excess funds held by South Korean households rose in the third quarter, driven mainly by an increase in income and tightened lending regulations, the central bank said Thursday.

According to Yonhap News Agency, net financial funds-the difference between financial assets and financial liabilities-held by households and nonprofit organizations reached 58 trillion won (US$40 billion) in the third quarter, up from 51.3 trillion won in the previous quarter, based on preliminary data from the Bank of Korea (BOK). Excess funds refer to the amount of money that remains on household balance sheets after funds are allocated to deposits, stock investments, and other financial assets.

In detail, fund investment increased by 1.9 trillion won quarter-on-quarter to 78.8 trillion won in the third quarter, while fundraising fell from 25.6 trillion won to 20.7 trillion won. "Fund investment, including deposits with financial institutions, has increased, as income growth outpaced spending. The government's stimulus last year also contributed to the rise in income," BOK official Kim Yong-hyun told a press briefing. "But borrowing declined as the government tightened lending regulations in response to rising home prices," he added.

Nonfinancial corporations raised 19.5 trillion won in net funds during the third quarter, up sharply from the previous quarter's 3.5 trillion won, while the government recorded net lending of 5.9 trillion won, shifting from net borrowing of 2.7 trillion won in the previous quarter, the data showed.