South Korea Sees Rebound in Household Surplus Fund

(MENAFN) South Korean households experienced a significant rebound in their net financial position during the third quarter of last year, driven primarily by reduced debt burdens, official data released Thursday revealed.

Net surplus funds—calculated as financial assets minus financial liabilities held by households and non-profit organizations—expanded by 6.7 trillion won (4.6 billion U.S. dollars) quarter-over-quarter to reach 58.0 trillion won in the July-September period of 2025, the Bank of Korea (BOK) reported.

This marked a dramatic reversal following a 41.6 trillion won contraction recorded in the April-June quarter.

Financial liabilities decreased 4.9 trillion won in the third quarter compared to the previous three-month period.

The BOK maintained its benchmark interest rate at 2.50 percent after implementing 25 basis point reductions in February and May 2025.

Financial assets, including deposits and securities, climbed 1.9 trillion won throughout the third quarter.

Deposit holdings jumped 7.6 trillion won, though insurance and pension assets declined 5.4 trillion won during the reporting period.

Holdings of equity securities and investment funds contracted 200 billion won. (1 U.S. dollar equals 1,449 won)

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