SEOUL, KOREA- South Korea's financial assets grew KRW 565.8 trillion (about KRW 500 billion) last year amid a rise in cash holdings and deposits, the central bank said Thursday.

 

The country's financial assets were valued at KRW 10,894.4 trillion ( KRW 9.6 trillion dollars) as of the end of 2011, up KRW 565. 8 trillion, or 5.5 percent, from a year earlier, according to the Bank of Korea (BOK).

 

Last year's growth was mainly attributed to a rise of cash holdings and deposits that posted 1,997.2 trillion won, or 18.3 percent of the total, in 2011. Financial assets, including lending, bonds, insurance and pensions, increased last year from the previous year, but stocks and invested stakes dipped over the same period.

 

Meanwhile, financial debts owed by household and non-profit organisations increased KRW 4.1 trillion on-year to KRW  85.6 trillion in 2011 due to demand for borrowing from depository institutions and other institutions.

 

Fund management by households expanded KRW 7.3 trillion on-year to KRW 149.1 trillion last year amid rising investment in marketable securities although demand for short- and long-term savings deposit contracted, according to the BOK.

 

Non-financial firms raised a total of KRW 145.1 trillion in 2011, up from KRW 117.1 trillion a year earlier, as local firms borrowed much more loans from banks, while lending by financial institutions expanded to 146.7 trillion won in 2011 from KRW 105.4 trillion the previous year.