Foreign currency deposits rise to all-time high in Aug.

In August, foreign currency deposits in South Korea reached an all-time high, rising to a record $140.62 billion, according to central bank data released by the Bank of Korea (BOK) on Thursday. The increase of $12.28 billion from July marked the highest level since the BOK began tracking the data in June 2012, with steady growth every month since April.

The surge in foreign currency holdings was primarily driven by a sharp rise in dollar savings, with U.S. dollar-denominated reserves climbing by $10.99 billion to reach $119.91 billion, the highest balance since June 2012. Euro-denominated savings also increased by $1.1 billion to $9.16 billion, while Japanese yen deposits rose by $0.32 billion to $8.94 billion.

Corporate foreign currency deposits expanded significantly by $10.93 billion to $123.49 billion, while individual holdings grew by $1.35 billion to $17.12 billion. The BOK attributed the substantial rise in foreign currency deposits to increased dollar receipts from exporting companies and funds held by local brokerages for investments in foreign bonds.