Seoul: South Korea's money supply rose for the 19th consecutive month in December, in line with an increase in short-term funds amid high market volatility, central bank data showed Thursday. The country's M2, a key gauge of the money supply, stood at 4,183.5 trillion won (US$2.87 trillion) in December, up 1 percent from the previous month, according to the preliminary data from the Bank of Korea (BOK).

According to Yonhap News Agency, the money supply has been on a constant increase since June 2023. On a year-on-year basis, the money supply advanced 6.9 percent in December, compared with a 6.4 percent on-year increase in November. The M2 is a measure of the money supply that counts cash, demand deposits, and other easily convertible financial instruments.

The increase came as demand deposits rose by 18.6 trillion won amid high volatility in the asset market, according to BOK officials. Corporate funds needed to manage a financial ratio at year-end also led to an increase in demand deposits.

South Korea's liquidity aggregate, the broadest measure of money supply, edged up 0.2 percent from a month earlier to stand at 7,106 trillion won in December, the data showed.