Seoul:South Korea's money supply experienced growth for the 11th consecutive month, primarily due to the inflow of export proceeds from large companies and the impact of higher interest rates, which led to an increase in time and savings deposits, as revealed by central bank data.

According to Namibia Press Agency, the seasonally adjusted M2, known as broad money, climbed 0.4 percent from the previous month to reach 4,283.9 trillion won (approximately 3.21 trillion U.S. dollars) in September, continuing its upward trend since November of the previous year, based on information from the Bank of Korea (BOK).

The Bank of Korea implemented consecutive rate hikes in July and August, elevating its benchmark interest rate to 3.00 percent. This monetary tightening caused the M1, or narrow money, to decrease by 0.2 percent in September on a monthly basis, sustaining a downward trend for three months in a row.

M1 includes currency in circulation, demand deposits, and transferable savings deposits equivalent to cash. M2 encompasses money market funds, time deposits, and financial products maturing in less than two years. Financial institutions' liquidity, termed Lf, rose by 0.4 percent during the same period, while the liquidity aggregate, the most comprehensive measure of money supply, also increased by 0.4 percent.

The Lf comprises financial products with a maturity of over two years, along with liquidity at insurers and brokerages, in addition to M2. The liquidity aggregate further incorporates state and corporate bonds into the Lf.