Korea Sees Record High Foreign Currency Deposits Amid Strong Dollar Demand

Foreign currency deposits in Korea have reached an all-time high of $128.34 billion as of July, according to data from the Bank of Korea (BOK). This marks a significant increase of $15.01 billion from the previous month and is the largest on-month gain since December 2022.

The rise in foreign currency deposits has been driven by an increase in dollar savings, with U.S. dollar-denominated reserves rising to $108.92 billion - the highest balance since June 2012. Euro-denominated savings also saw a gain of $2.22 billion to reach $8.06 billion.

Corporate foreign currency deposits rose $13.57 billion to $112.56 billion, while individual holdings increased $1.44 billion to $15.77 billion.

The BOK attributed the sharp rise in foreign currency deposits to increased dollar receipts by exporting companies and funds held by local brokerages for investments in foreign bonds.