In August, foreign currency deposits held by residents in South Korea rose for the fifth consecutive month, reaching an all-time high. Deposits in U.S. dollars saw significant growth.
According to data released by the Bank of Korea on October 1, the balance of foreign currency deposits held by residents at foreign exchange banks increased by $12.28 billion from the previous month, totaling $140.62 billion as of the end of August.
This figure marks the highest level since statistics began being compiled in June 2012. The balance of foreign currency deposits surpassed $120 billion in July, setting a record, and continued to grow in August.
Resident foreign currency deposits include those held by South Korean nationals, domestic companies, foreigners residing in South Korea for more than six months, and foreign companies operating in the country.
By currency, dollar deposits saw the largest increase. The balance of dollar deposits at the end of August was $199.11 billion, up by $10.99 billion.
The dollar deposit balance also surpassed $100 billion for the first time in July and continued to rise in August, nearing $120 billion within a month. The increase was the largest since the Bank of Korea began compiling statistics in June 2012.
The Bank of Korea explained that the rise was driven by large corporations receiving current account payments, inflows of investor deposits into securities firms, and pre-purchases of dollars due to a decline in the exchange rate.
The balance of euro deposits was reported at $9.16 billion, an increase of $1.1 billion from the previous month, also reflecting some companies receiving current account payments. Yen deposits rose by $320 million to $8.94 billion.
By sector, corporate deposits reached $123.49 billion, an increase of $10.93 billion from the previous month, setting a new record.
Of this, the balance of corporate dollar deposits increased by $9.96 billion, totaling $105.64 billion, also a record high. Individual deposits rose by $1.35 billion to $17.12 billion.
By bank type, domestic banks reported a balance of $110.86 billion in resident foreign currency deposits, an increase of $8.47 billion, while foreign bank branches reported $29.76 billion, up by $3.81 billion.
* This article has been translated by AI.
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