SEOUL — Corporate dollar deposits at South Korean banks jumped at the fastest pace this year in November as firms moved aggressively to boost their U.S. dollar holdings amid a strengthening greenback and rising currency-market uncertainty, according to new industry data released Sunday.
Outstanding corporate dollar deposits at five major commercial banks — including KB Kookmin Bank and Shinhan Bank — climbed to US$53.7 billion as of Thursday, up 21 percent from $44.3 billion at the end of October, Yonhap News Agency reported. The increase marks the largest monthly rise of 2025. These dollar deposit products allow companies to convert won into dollars for deposit and then withdraw or reconvert the funds at maturity.
Typically, deposit balances decline when the dollar appreciates, as investors lock in gains. But this trend reversed in November, with companies expanding their dollar positions despite the stronger U.S. currency. Industry insiders attributed the shift to heightened market uncertainty and rising U.S. investment, prompting firms to build larger dollar buffers.
“Following U.S. President Donald Trump’s election last December, corporate currency exchange transactions and dollar deposit balances hit record highs,” an official at a local bank said. “This month saw the largest increase so far this year.”
Individual investors also increased their dollar holdings. Their outstanding dollar deposits reached $12.2 billion as of Thursday, marking the fourth straight monthly rise since August. Growing interest in overseas stock markets and expectations of continued dollar strength have fueled demand among retail investors.
A separate banking official noted that volatility in the foreign exchange market has encouraged both companies and individuals to increase foreign currency reserves.
The South Korean won has sharply weakened in recent months despite repeated verbal intervention by authorities, sliding from around 1,390 won per dollar on September 1 to roughly 1,470 won on Friday. (Source: IANS)
