Home > Business > Economy

Corporate dollar deposits increase at fastest pace in November

Published: 30 Nov. 2025, 12:29

An employee sorts dollar bills at Hana Bank’s Counterfeit Response Center in central Seoul on Nov. 26. [NEWS1]

Dollar deposits by companies at local banks rose at the fastest pace of the year in November as firms accelerated efforts to increase their dollar holdings amid a strengthening greenback, industry data showed Sunday.

Companies' outstanding dollar deposits at five major commercial banks reached $53.7 billion as of Thursday, up 21 percent from $44.3 billion a month earlier, according to the data.

The increase marks the largest monthly gain in 2025.

Dollar deposits are financial products in which won is converted into dollars and deposited, then withdrawn or converted back into won upon maturity.

Typically, when the dollar strengthens, investors tend to realize profits, leading to a decline in dollar deposit balances.

However, dollar deposits rose in November despite the stronger dollar.

Insiders said companies expanded their dollar holdings amid rising U.S. investment and heightened foreign exchange market uncertainties.

"Following U.S. President Donald Trump's election last December, corporate currency exchange transactions and dollar deposit balances hit record highs," a representative at a local bank said. "This month saw the largest increase so far this year."

Individual investors have also increased their dollar deposits.

Their outstanding dollar deposits reached $12.2 billion as of Thursday, marking the fourth consecutive monthly rise since August.

Growing investment in overseas stock markets and expectations of a stronger dollar have fueled demand among individual investors.

"Amid recent volatility in the foreign exchange market, there is a trend, particularly among companies, to increase foreign currency holdings," a separate commercial bank spokesperson said.

The Korean won has sharply depreciated against the dollar in recent months despite authorities' repeated verbal interventions, sliding from around 1,390 won per dollar on Sept. 1 to about 1,470 won on Friday.

Yonhap