SK residents’ foreign currency deposits hit record $150B last month
South Korean residents’ foreign currency deposits surpassed 150 billion dollars last month, setting an all-time high for the third month, according to Bank of Korea data released on the 28th. The expansion was driven primarily by corporate dollar accounts amid a booming semiconductor export cycle.
Foreign Currency Deposit Growth Reaches 154.71 billion Dollars in September
The total balance of resident foreign currency deposits at foreign exchange banks across South Korea reached 154.71 billion dollars at the end of September. This figure represents a 14.09 billion dollar increase compared to the 140.62 billion dollars recorded at the end of August. Since tracking began in June 2012, this metric has broken historical records for three straight months, starting in July.
Dollar-denominated deposits accounted for 132.9 billion dollars of the total, establishing a new record for the fourth month. This marked a 12.99 billion dollar surge from the 119.91 billion dollars registered in August. Corporate dollar deposits climbed to 117.87 billion dollars, notching a record high for the fifth month with a 12.23 billion dollar increase over the prior month.
The Bank of Korea attributed the growth in dollar deposits to several distinct capital inflows. These include operating proceeds received by large conglomerates, inflows of investor deposits channeled through securities firms, and funds raised via foreign currency bond issuances by public enterprises.
Yen and Euro Deposits Rise as Corporate Holdings Expand
Yen-denominated deposits rose by 0.55 billion dollars to reach 9.49 billion dollars. Euro-denominated deposits increased by 0.37 billion dollars to hit 9.53 billion dollars. The Bank of Korea noted that the increase in yen deposits stemmed from higher travel-related currency exchanges driven by a weak yen, while the growth in euro deposits reflected corporate export settlement receipts.
Corporate deposits overall expanded by 13.11 billion dollars to 136.6 billion dollars. Personal deposits grew by 0.98 billion dollars to reach 18.11 billion dollars. Domestic commercial banks saw their resident foreign currency deposit balances rise by 9.18 billion dollars to 120.04 billion dollars, while local branches of foreign banks recorded a 4.91 billion dollar increase to 34.67 billion dollars.