The Bank of Korea has estimated that the amount of extra money that households had after not spending or investing shrank 20 trillion won last year from a year ago, posting the lowest figure in four years.
 
The central bank announced on Wednesday that the amount of extra money households and nonprofit organizations held last year amounted to 70-and-a-half trillion won. Extra money is calculated by subtracting loans from funds managed through deposits, insurance and stock investments.
 
The 70-and-a-half trillion won is down 23-point-seven trillion won from 2015 and was the lowest figure to be posted since 2012 when such extra money amounted to 69-and-a-half trillion won.
 
The amount of funds that households and nonprofit organizations managed by entrusting them to financial institutions amounted to 213-and-a-half trillion won while money that they borrowed from financial institutions stood at 143 trillion won.
 
Nonprofit organizations include private consumer groups, charity and relief groups as well as religious groups.
 
The central bank said that the amount of extra money contracted sharply due to the rise in purchase of new houses.