Foreign currency deposits rise for 2nd month to record high amid weak won: BOK

An official checks U.S. dollar notes at a bank branch of Hana Bank in central Seoul, Jan. 6. Yonhap

Foreign currency deposits in Korea rose for a second consecutive month in December, reaching an all-time high amid weakness in the local currency, central bank data showed Monday.

Outstanding foreign currency-denominated deposits held by residents stood at $119.43 billion at the end of December, up $1.59 billion from a month earlier, according to the data from the Bank of Korea (BOK).

The figure marked the highest level since June 2012, when the central bank began compiling relevant data.

The previous record was set in August 2025, but deposits declined over the following two months before rebounding in November.

Residents include Korean citizens, foreigners who have lived in the country for more than six months and foreign companies. The data excludes interbank deposits.

"Companies and individuals boosted their dollar holdings amid heightened volatility in the won-dollar exchange rate around the end of last year. Funds for exporters' payment settlements and standby funds earmarked for overseas investment, in particular, flowed into foreign currency deposits," a BOK official said.

Corporate foreign currency deposits jumped $14.07 billion from a month earlier to a record high of $102.5 billion, while individual holdings rose $1.82 billion to $16.93 billion.

By currency, U.S. dollar-denominated deposits increased $8.34 billion to $95.93 billion, while Japanese yen deposits gained $870 million to $9 billion.

Euro-denominated deposits climbed $6.35 billion to $11.75 billion, and Chinese yuan deposits rose $310 million to $1.45 billion, the data showed.

The won had hovered near the closely watched 1,470 won level against the U.S. dollar, pressured by broad dollar strength, geopolitical risks and strong overseas equity investment by local investors, prompting authorities to issue verbal interventions and roll out various policy measures.

Amid volatility, the currency was quoted at 1,465.8 won per dollar Friday.