South Korea's M2 money supply grew to a record high in April due to ample liquidity amid the COVID-19 pandemic.

According to the Bank of Korea, the M2 reached three-thousand-18-point-six trillion won at the end of April, surpassing the three-thousand-trillion mark for the first time.

The figure increased 34 trillion won in April, up one-point-one percent from a month earlier to post the largest monthly gain.

The M2 includes currency in circulation, as well as types of deposits with a maturity of less than two years at lenders and non-banking financial institutions. It does not cover those with a maturity of two years or longer, government bonds or corporate bonds.

The central bank explained that money supply has sharply increased as businesses and households took out loans to secure funds amid the continued pandemic.

The BOK expressed concerns about the inflow of the ample liquidity into the over-heated housing market.