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South Korea August money supply growth ticks up from July

SEOUL, Oct 10 (Reuters) - Annual growth in South Korea'sbroadest measure of money supply ticked up in August from a3-month low set in July but stayed relatively low as the economycooled, central bank data showed on Wednesday.

The L-money supply measure -- which includes all cash, alltypes of deposits at financial institutions and all money marketinstruments issued -- rose 9.2 percent in August from a yearearlier, the Bank of Korea data showed.

It was up from a 9.0 percent gain in July but was close toan average of 9.1 percent growth seen for the past six months.

Meanwhile, bank lending to households fell by a net 0.8trillion won ($720.2 million) in September, compared with a net1.5 trillion won rise in August and marking the third monthlyfall this year, separate data from the central bank showed.

Apart from the economic slump, South Korea's bank lending tohouseholds has also been hit by government measures introducedlast year to contain further growth in heavy debts owed byhouseholds.

In contrast, bank lending to small- and medium-sizedenterprises jumped by a net 5.1 trillion won in September, themost since July 2008, underscoring growing financial troublesfor businesses from the economic slowdown, the data showed.

($1 = 1,110.8500 Korean won)

(Reporting by Christine Kim; Editing by Choonsik Yoo andJacqueline Wong)

((christine.kim@thomsonreuters.com)(822 3704 5665)(ReutersMessaging: christine.kim.thomsonreuters.com@reuters.net))

Keywords: KOREA ECONOMY/MONEYSUPPLY