South Korea's money supply grew at a faster pace as fiscal expenditure rose following the extra budget plan implemented, central bank data showed Wednesday.

The country's M2, or broad money, rose 0.6 percent from a month earlier to a seasonally-adjusted 1,883.7 trillion won (1.69 billion U.S. dollars) in June after gaining 0.1 percent in the prior month, according to the Bank of Korea (BOK).

The faster growth came after the government began conducting its supplementary budget worth 17.3 trillion won (15 billion U.S. dollars). Amid ample liquidity, companies put their idle money at bank accounts.

The M1, dubbed as narrow money, expanded 2.5 percent in June from a month earlier after rising 0.1 percent in the previous month.

The M1 covers currency in circulation and demand deposit equivalent to cash, while the M2 adds transferable savings deposit, time deposit and financial products that mature in less than two years to M1.

Liquidity of financial institutions, also called Lf, increased 0.4 percent on-month in June after gaining 0.3 percent in the prior month.

The on-month growth of liquidity aggregate, the broadest measure of money supply, logged 0.3 percent in June, with the on- year figure posting a 6.8 percent expansion.

The Lf covers financial products with a maturity of more than two years and liquidity at insurers and brokerages along with M2, while the liquidity aggregate adds state and corporate bonds to the Lf.