Korea Sees Third Consecutive Rise in Foreign Currency Deposits

Foreign currency deposits in Korea continued their upward trend for the third consecutive month in June, driven by increased dollar savings. According to data from the Bank of Korea (BOK), outstanding foreign currency-denominated deposits held by residents stood at $113.33 billion at the end of June, up $1.08 billion from a month earlier.

The rise in dollar-denominated deposits was particularly notable, increasing by $2.25 billion to $97.8 billion. This increase has been attributed to higher basic deposits required for derivatives trading amid stock market volatility, as well as increased dollar receipts by exporting companies.

Corporate foreign currency deposits saw a significant increase of $1.58 billion to $98.99 billion, while individual holdings declined by $500 million to $14.33 billion. Euro-denominated deposits dropped $460 million to $5.84 billion, and Japanese yen deposits fell by $410 million to $7.12 billion.