Liquidity in financial system not excessive: BOK

SEOUL, May 21 (Yonhap) -- South Korea's liquidity supply in the market is not
excessive, but there is a need to be cautious against a possible shift of
short-term money into real estate markets, the central bank said Thursday.

"Liquidity in the financial system is not excessive enough to spark any
considerable negative effects as the growth of liquidity is currently not putting
upward pressure on inflation and other asset prices," the Bank of Korea (BOK)
said in a statement.
"But there is a need to closely watch a possible move of short-term floating
money into the real estate markets," it said, adding that the BOK will cooperate
with the government and the financial watchdog to tackle possible problems if
necessary.
sooyeon@yna.co.kr
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