While semiconductor exports are growing on the US-led AI boom, corporate funds are remaining within companies and households continue to face strained finances. In the second quarter, corporate surplus funds reached a record high, household deposits fell sharply, and household debt exceeded ¥2,000 trillion for the first time.
According to the Bank of Korea, corporate surplus funds reached a record ¥67.1 trillion in the second quarter, from April through June this year. Meanwhile, household deposit balances fell by ¥27.3 trillion, while household debt exceeded ¥2,020 trillion. The gap between the corporate and household sectors has consequently widened.
Nominal national income rose 26.4% year on year, but household income rose only 8.7%, prompting suggestions that funds earned by companies through exports may not be flowing sufficiently into investment and employment.
Households may face an even heavier burden as a result of recent increases in lending rates. Interest expenses per household rose 12.1% from a year earlier, equivalent to 2.7 times the rate of income growth.