Resident Foreign Currency Deposits Rise for Second Month
Driven by Inflows from Pension Funds and Corporations
Resident foreign currency deposits increased for the second consecutive month, driven by higher deposits from pension funds and certain corporations.
According to the "Trends in Resident Foreign Currency Deposits for June 2025" released by the Bank of Korea on July 23, resident foreign currency deposits at foreign exchange banks stood at $106.44 billion at the end of last month, up $5.08 billion from the end of the previous month. Resident foreign currency deposits include deposits held in foreign currencies by domestic individuals and companies, foreigners residing in Korea for more than six months, and foreign companies operating in Korea.
Resident foreign currency deposits had turned to a decline in February this year and continued to fall for three consecutive months, but rebounded again in May.
By currency, dollar-denominated deposits, which account for the largest share, rose by $3.6 billion from the previous month to $89.14 billion. An official from the Bank of Korea stated, "The increase was due to pension funds temporarily depositing overseas investment funds and some companies depositing funds for current transactions."
Yen-denominated deposits increased by $260 million over the same period to $8.69 billion. Yuan-denominated deposits, which had declined in May, also rebounded, rising by $1.1 billion to $2.07 billion. This was attributed to overseas subsidiaries depositing dividend payments on behalf of their domestic parent companies.
By depositor, corporate deposits increased by $4.66 billion to $91.67 billion. Individual deposits rose by $420 million to $14.77 billion. By bank, deposits at domestic banks increased by $2.67 billion to $91.98 billion, while deposits at foreign bank branches also rose by $2.41 billion to $14.46 billion.
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