Foreign Currency Deposits Rebound for Two Consecutive Months Due to Increased Overseas Investment by Pension Funds

[Financial News] Resident foreign currency deposits have risen for two consecutive months. The balance of foreign currency deposits surpassed 106 billion dollars as more than 3.5 billion dollars of overseas investment funds from pension funds were deposited in dollar deposits.
According to the 'May 2025 Resident Foreign Currency Deposit Trends' released by the Bank of Korea on the 23rd, last month's domestic resident foreign currency deposits totaled 106.44 billion dollars. This was an increase of 5.08 billion dollars from a month ago, marking the first increase in four months since January this year, following the increase in May (101.36 billion dollars), continuing the rise for two consecutive months. 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 established in Korea.
The largest increase was in dollar deposits. Last month's dollar deposits amounted to 89.14 billion dollars, an increase of 3.6 billion dollars from the previous month. This was due to temporary deposits of overseas investment funds from pension funds and deposits of some companies' current transaction funds. Yuan deposits and yen deposits increased by 1.1 billion dollars and 260 million dollars, respectively, due to dividend deposits from overseas local subsidiaries to domestic parent companies.
By entity, corporate deposits increased by 4.66 billion dollars to 91.67 billion dollars, and personal deposits increased by 420 million dollars to 14.77 billion dollars. Domestic bank deposit balances increased by 2.67 billion dollars to 91.98 billion dollars, and foreign bank branches increased by 2.41 billion dollars to 14.46 billion dollars.

eastcold@fnnews.com Kim Dongchan Reporter