South Korean firms' money supply is growing fast this year as businesses try to secure funds before an interest rate hike.

According to Bank of Korea, the M2 category of money supply which includes cash and checking deposits as well as "near money" such as money market securities and mutual funds stood at 694-point-five trillion won as of late July, up nine percent from a year ago.

At the current pace, the figure is expected to top 700 trillion won this year.

The volume of corporate money supply has been on the rise this year, maintaining nine percent range on-year growth every month so far, compared to two to six percent last year.

The increase points to a steady rise in loans taken out by companies.