Korean Investors Flock to Yen Amid Won Strength

Korean investors are increasingly turning from the US dollar to the Japanese yen as the South Korean won has strengthened against the greenback in recent months. The won-dollar exchange rate has fallen from above 1,550 won in the first half of the year to the 1,300-won range.

With the won falling to a record low near 850 won against 100 yen, expectations are growing for a gradual yen recovery, prompting investors to buy the Japanese currency in advance. Yen deposits at Korea's five major commercial banks stood at 1.13 trillion yen as of Tuesday, up 47.8 billion yen from the end of August.

The balance had once fallen to 879.6 billion yen in May but has climbed steadily since. Dollar deposits, on the other hand, have headed in the opposite direction, falling by $7.19 billion from last month's levels.