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Foreign currency deposits rise for 2nd month in January

Published: 24 Feb. 2025, 19:12

JIN EUN-SOO
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An official checks banknotes at a bank branch of Hana Bank in central Seoul, in this file photo taken March 4, 2020. [YONHAP]

Foreign currency deposits rose for a second consecutive month in January as companies secured more dollar holdings amid heightened uncertainty, the central bank said Monday.

Outstanding foreign currency-denominated deposits held by residents came to $103.44 billion as of the end of January, up $2.14 billion from a month earlier, according to the data from the Bank of Korea.

It marked the second straight month of increase, following the first on-month rise in three months in December.

Residents include local citizens, foreigners who have stayed in Korea for more than six months and foreign companies. The data excludes interbank foreign currency deposits.

The growth came as companies secured a larger amount of fund deposits for import settlements, investments and other purposes while navigating uncertainty at home and abroad, officials said.

Korea has experienced political chaos after President Yoon Suk Yeol's shocking martial law declaration on Dec. 3, 2024, while the country is bracing for the impact of U.S. President Donald Trump's new tariff scheme and other protectionist measures.

Corporate deposits amounted to $89.2 billion as of the end of January, up $2.08 billion from the previous month, while individual holdings rose by $60 million to $14.24 billion.

By currency, dollar-denominated deposits rose by $1.88 billion to $88.31 billion, and yen-denominated deposits climbed $110 million to $8.29 billion. Euro-denominated deposits gained $80 million to $4.45 billion.

The Korean won fell to 1,455.79 won against the U.S. dollar in January from the previous month's 1,434.42 won. From a year earlier, the won sank 10 percent.

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