Foreign-currency deposits rebound after sharp drop, led by the dollar

[Financial News] Foreign-currency deposits at foreign exchange banks have maintained their rebound for three straight months after posting a record decline.
According to the Bank of Korea's 'Trends in Resident Foreign-Currency Deposits in June 2026' released on the 27th, resident foreign-currency deposits held at domestic foreign exchange banks totaled $113.33 billion at the end of June. That was up about $1.08 billion from the previous month-end of $112.25 billion.
The indicator had previously hit a record high of $119.43 billion in December last year, then fell for two consecutive months in January and February by $1.4 billion and $490 million, respectively. In March, it posted a record monthly drop of $15.37 billion. Since then, it has rebounded from April and has risen for three straight months.
Resident foreign-currency deposits are the total foreign-currency deposits held in Korea by local individuals, domestic companies, foreigners who have lived in the country for at least six months, and foreign companies operating in Korea.
By currency, dollar deposits rose by $2.25 billion to $97.8 billion. They have also increased for three consecutive months since April. A Bank of Korea official explained that the increase was driven by higher customer deposits at securities firms, including margin deposits related to on-exchange derivatives transactions and customer funds for overseas securities investment, as well as large companies receiving current account payments.
By contrast, Japanese yen deposits, euro deposits, and yuan deposits fell by $410 million, $460 million, and $20 million, respectively, to $7.12 billion, $5.84 billion, and $1.27 billion. Other currencies, including the British pound and Australian dollar, also declined by $280 million to $1.3 billion.
Yen deposits were affected by current account payments, while euro deposits were influenced by loan repayments by some companies.
By holder, corporate deposits rose by $1.58 billion from the previous month-end to $98.99 billion. Individual deposits, at $14.33 billion, fell by $500 million.
By bank type, deposits at domestic banks rose by $50 million to $92.78 billion, while those at branches of foreign banks in Korea increased by $1.03 billion to $20.55 billion.

[email protected] Kim Tae-il Reporter