South Korea's M2 money supply grew by around 25 trillion won in August due to a sharp increase in deposits and savings attracted to high interest rates amid rapid inflation. 

According to the Bank of Korea on Tuesday, M2 -- which includes time deposits with a maturity of less than two years -- reached three-thousand-744-point-one trillion won at the end of August, up by zero-point-seven percent, or 24-point-six trillion won, from a month earlier. 

The figure posted an on-month growth for the fifth consecutive month since April after it declined for the first time in three-and-a-half years in March. 

The central bank explained that money supply growth continues as those previously invested in high-return, high-risk securities are turning their attention to deposits and savings buoyed by the higher return rates they offer. 

Deposits and installment savings jumped by over 34 trillion won in total from July, the BOK data showed.