Excess cash held by South Korean households and non-profit agencies fell to the lowest level in nine months in the third quarter of the year due mainly to seasonal factors and a rise in property market transactions, central bank data showed Tuesday.

Their excess funds totaled 19.4 trillion won (US$17.7 billion) in the third quarter, compared with 29.6 trillion won three months earlier when the figure soared to the highest level in more than a year on sluggish private spending after the deadly Sewol ferry sinking in April this year, according to the data compiled by the Bank of Korea (BOK).

The latest figure marks the lowest level since the 15.6 trillion won in the fourth quarter of 2013. The figure is not seasonally adjusted and is in nominal terms.

Excess funds refer to money that remains on the balance sheets of households and non-profit agencies after deducting their deposits and financial investments.

"There were seasonal factors that led to a rise in spending, such as the Chuseok holiday, as well as a rise in property purchases," said Moon So-sang, who heads the BOK's Flow of Funds team.

Property market transactions and demand for mortgage loans have gained traction since the third quarter as the government eased mortgage lending rules and the central bank lowered the base rate in August.

"From the previous quarter, there was also a base effect," she said, referring to the ferry disaster that killed more than 300 people.

Non-financial firms' capital shortages, meanwhile, widened to 11.9 trillion won in the third quarter from 7.1 trillion won three months earlier due to sluggish sales and seasonal factors.

"On top of slow sales, there were seasonal factors as companies tend to dole out bonuses in line with the Chuseok holiday," said Moon. (Yonhap)