Seoul: South Korean households’ surplus funds turned downward over four quarters due to lower income and higher investment in real estate, central bank data showed Thursday.

According to Namibia Press Agency, the net surplus fund, which represents the value of financial assets minus financial debts held by households and non-profit organizations, decreased by 41.6 trillion won (22.1 billion U.S. dollars) to 51.3 trillion won (67.9 billion dollars) in the April-June quarter compared to the previous quarter.

This marked the first reduction since the second quarter of last year, largely due to lower household income and increased investment in real assets, particularly apartments. Financial assets, including deposits and securities, fell by 24.3 trillion won (17.1 billion dollars) during the second quarter. Within this category, deposit holdings decreased by 15.2 trillion won (10.7 billion dollars), while possession of insurance and pension assets grew by 3.9 trillion won (2.7 billion dollars).

Holdings of equity securities and investment funds saw a decline of 11.4 trillion won (8.0 billion dollars). Meanwhile, financial liabilities increased by 17.4 trillion won (12.3 billion dollars) in the second quarter compared to the previous quarter, driven by a strong demand for new homes financed with borrowed money.

The Bank of Korea (BOK) responded by cutting its benchmark interest rate by 25 basis points in February and May, following similar reductions in October and November of the previous year.