Why are corporate dollar deposits rising at major Korean banks in September?

Export proceeds are coming in, but exporters are delaying conversion into won. Import companies are also buying U.S. dollars in installments, which adds to demand for dollar deposits.

How strong was the won-dollar exchange rate when corporate dollar deposits hit a record?

The won was quoted at 1,345 per dollar as of 10:30 p.m. Friday, its highest level since Oct. 8, 2024. The rate had climbed 254.2 won from the July 1 low of 1,588.2 per dollar.

What signs showed increased demand for dollars beyond companies?

A total of $60 million was exchanged from won to dollars in the first three days of the month at the five major banks. An NH NongHyup official said individuals were also buying dollars to invest in U.S. stocks.

Corporate dollar deposits peak in September as won strengthens: data

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Summary

Corporate dollar deposits at five major Korean banks hit a record $76.98 billion as of Thursday, as the won strengthened to 1,345 per dollar on Friday. The rate was its highest since Oct. 8, 2024, and had risen 254.2 won from its July 1 low of 1,588.2. Exporters are delaying conversions to won, while import companies are buying dollars in installments. Individual demand for dollars has also risen for U.S. stock investing.

Key Facts

The five banks are KB Kookmin, Shinhan, Hana, Woori and NH NongHyup.
The outstanding dollar deposits were the highest since the banks began compiling the data in May 2021.
A total of $60 million was exchanged from won to dollars in the first three days of September at the five banks.
The monthly won-to-dollar exchange amount had fallen to $164 million in June before rebounding to $349 million in July.
An official from NH NongHyup bank said individual demand for dollars has increased since the won-dollar exchange rate fell in July and August.

By Yonhap

Published Sep 6, 2026 10:08 am KST

U.S. dollar bills at Hana Bank in Seoul, Dec. 3, 2025. Yonhap

Corporate dollar deposits at major Korean banks have risen to a record high this month, as the won-dollar exchange rate fell to its lowest level in almost two years, industry data showed Sunday.

The outstanding dollar deposits at five major local banks stood at $76.98 billion as of Thursday, the highest level since banks began compiling such data in May 2021.

The five banks are KB Kookmin, Shinhan, Hana, Woori and NH NongHyup.

The Korean won was quoted at 1,345 won per dollar as of 10:30 p.m. Friday, the highest level since Oct. 8, 2024, when the won traded at 1,344.6 won against the greenback.

The won-dollar exchange rate has risen by 254.2 won from an all-time low of 1,588.2 won per dollar recorded on July 1.

"Dollar deposits are growing as export proceeds come in, while exporters delay exchanging them to the Korean won. Import companies are also actively buying the U.S. dollar in installments," Baek Seok-hyun, an economist at Shinhan Bank's S&T Center, said.

Demand to exchange the won into the dollar is also growing.

A total of $60 million was exchanged from the Korean won to the U.S .dollar in the first three days of this month at the five banks.

The monthly exchanged amount had sharply declined from $275 million in February to $164 million in June before rebounding to $349 million the following month, the data showed.

"Individuals are buying dollars since the won-dollar exchange rate fell in July and August. Demand for the dollar to invest in U.S. stocks has also risen," an official from NH NongHyup bank said.

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