Due to the increase in corporate export proceeds deposits, resident foreign currency deposits rebounded by approximately US$4.6 billion last month compared to a month earlier. Yen deposits reached a record high due to individual investment demand amid the yen depreciation trend as well as corporate subsidiaries’ dividend deposits.
According to the “Resident Foreign Currency Deposits Trend in October” announced by the Bank of Korea on Nov. 16, the foreign currency deposits of domestic residents increased by US$4.61 billion last month compared to a month ago, reaching US$94.3 billion. Foreign currency deposits had decreased by US$5.9 billion in August and US$9.41 billion in September but turned positive with an increase in just one month.
Resident foreign currency deposits include deposits held domestically by domestic individuals, domestic companies, foreign individuals residing in the country for more than six months, and foreign companies operating in the country.
The growth in resident foreign currency deposits last month is attributed to the improvement in exports since October, leading to an increase in the export proceeds that companies have deposited in banks.
Breaking down by currency, U.S. dollar deposits in October increased by US$4.03 billion compared to the previous month, reaching US$77.88 billion. The deposit growth was attributed to factors such as companies depositing export proceeds and dividends from overseas subsidiaries as well as the retrieval of precautionary overseas transfer funds for the Chuseok holiday.
Yen deposits reached a record high of US$8.61 billion, increasing by US$230 million compared to the previous month. This marks the second consecutive monthly increase since September at US$10 million. Amid growing demand for individual investment due to the depreciation of the yen, deposits further expanded last month, fueled by the receipt of dividends from overseas subsidiaries.
Euro deposits recorded US$5.33 billion, increasing by US$240 million due to temporary deposits for import payments. Yuan deposits grew by US$40 million to US$1.14 billion.
By entity, corporate deposits increased by US$4.48 billion to US$79.7 billion, while individual deposits rose by US$130 million to US$14.6 billion.
By bank, the balance of deposits in domestic banks increased by US$3.91 billion to US$84.72 billion, while the figures in foreign branches rose by US$700 million to US$9.58 billion.