Relentless 'Enjeo Tech'... Yen Deposits Approaching $10 Billion Last Month

The Bank of Korea's November Resident Foreign Currency Deposit Trends
Surpasses 100 Billion Dollars Again After 4 Months

Last month, foreign currency deposits held by residents in South Korea surpassed $100 billion again after four months, reaching $101.76 billion. Among these, yen deposits approached $10 billion, setting a new record for the third consecutive month. This increase was driven by rising demand for yen deposits seeking exchange gains amid the depreciation of the yen (yen depreciation).

According to the "November Resident Foreign Currency Deposit Trends" released by the Bank of Korea on the 19th, foreign currency deposits by domestic residents last month totaled $101.76 billion, an increase of $7.46 billion compared to the end of the previous month.

Resident foreign currency deposits refer to foreign currency deposits held domestically by nationals, domestic companies, foreigners residing in Korea for more than six months, and foreign companies operating in Korea.

Resident foreign currency deposits decreased in August (-$5.9 billion) and September (-$9.41 billion), then turned to an increase in October (+$4.61 billion), continuing the upward trend for two consecutive months through November (+$7.46 billion).

By currency, deposits in US dollars ($83.83 billion), Japanese yen ($9.92 billion), and euros ($5.51 billion) all increased. Compared to the end of the previous month, they rose by $5.95 billion, $1.31 billion, and $180 million, respectively.

The Bank of Korea explained that the increase in US dollar deposits was largely due to rising corporate exports and increased investor deposits at securities firms. Yen deposits grew mainly due to increased investor deposits at securities firms and individual deposits, while euro deposits slightly increased influenced by non-transaction factors such as the euro's appreciation leading to a higher US dollar equivalent.

By depositor type, corporate deposits ($86.24 billion) and individual deposits ($15.52 billion) increased by $6.54 billion and $920 million, respectively.

By bank type, domestic banks ($92.38 billion) saw an increase of $7.66 billion, whereas foreign bank branches ($9.38 billion) decreased by $200 million.