Korean Banks See Record Corporate Dollar Deposits Amid Strengthened Won-Dollar Rate

Corporate dollar deposits at major Korean banks have reached a record high in September as the won-dollar exchange rate has strengthened to its highest level since October 2024.

The outstanding dollar deposits at five major local banks stood at $76.98 billion as of Thursday, according to industry data. This is the highest level since banks began compiling such data in May 2021.

The Korean won was quoted at 1,345 won per dollar on Friday, its highest level since October 8, 2024, when it traded at 1,344.6 won against the greenback. The won-dollar exchange rate has risen by 254.2 won from an all-time low of 1,588.2 won per dollar recorded on July 1.

Exporters are delaying exchanging their foreign currency to Korean won, while import companies are actively buying US dollars in installments. Individual demand for dollars has also increased due to rising interest in investing in U.S. stocks.