M2 is a measure of money supply that includes M1 (coins and notes in circulation and other money equivalents that are easily convertible into cash) plus short-term time deposits in banks and 24-hour money market funds.

 

The share of the M2 money supply held by households and non-profit organizations in the month of July was 1,041.434.7 billion won, up only 2.5 percent from a year ago. The year-on-year growth rate of the household share of M2 hovered around the 8.0-percent level in 2010, but plummeted to 4.1 percent in 2011. Since early this year, the ratio has been steady at around 3 to 4 percent for months and gone down below the 3-percent level in June at 2.9 percent.