Foreign currency deposits rise to fresh record high in September

In September, foreign currency deposits in South Korea reached a new record high, according to central bank data released on Wednesday. The Bank of Korea (BOK) reported that outstanding foreign currency-denominated deposits held by residents totaled $154.7 billion at the end of September, marking a substantial increase of $14 billion from the previous month.

This represents the highest level since the BOK started compiling the data in June 2012. The upward trend has continued for four consecutive months, starting from April.

Resident deposits, which include Korean citizens, foreigners who have lived in the country for over six months, and foreign companies, played a significant role in this surge. By currency type, U.S. dollar-denominated reserves saw the largest increase, rising by $12.99 billion to reach $132.9 billion, which is the highest balance since June 2012.

Additionally, euro-denominated savings increased by $0.37 billion to $9.53 billion, while Japanese yen deposits climbed by $0.55 billion to $9.49 billion. Corporate foreign currency deposits expanded by $13.1 billion to $136.6 billion, while individual holdings grew by $0.98 billion to $18.11 billion.

The BOK attributed the sharp rise in foreign currency deposits to various factors, though specific details were not provided in the source material.