Seoul: South Korea's money supply experienced a slight increase in April, primarily driven by a rise in savings deposits during a period of monetary easing, according to data released by the central bank.

According to Yonhap News Agency, the country's M2, a crucial indicator of money supply, reached 4,235.8 trillion won (approximately US$3.1 trillion) in April, reflecting a 0.2 percent increase from the previous month, as per preliminary data from the Bank of Korea (BOK). This development marks a recovery after a decline in March, which was the first in 23 months.

The M2 measure encompasses cash, demand deposits, and other financial instruments that can be easily converted into cash. The increase in April was attributed to a 9.4 trillion won expansion in regular savings deposits, as individuals hurried to deposit their funds in anticipation of further interest rate reductions. Investment funds also saw an increase of 5.1 trillion won during the same period.

However, the data revealed a decrease in demand deposits by 5.3 trillion won, alongside a 3.9 trillion won drop in other liquid financial products. Meanwhile, South Korea's liquidity aggregate, the broadest measure of money supply, rose 0.5 percent from the previous month, reaching 7,276.9 trillion won in April, as indicated by the data.