Residents Bought More Dollars as Exchange Rate Fell; Foreign-Currency Deposits Hit Record $140.6 Billion in August

[Financial News]  Residents’ foreign-currency deposits surpassed $140 billion, setting another record high. The increase resulted from a combination of demand for dollars amid a sharp decline in the exchange rate and large inflows of funds into major companies and securities firms.
According to the trends in residents’ foreign-currency deposits in August 2026 released by the BOK on the 1st, the balance of residents’ foreign-currency deposits at domestic foreign-exchange banks stood at $140.62 billion as of the end of August. This was the highest level on record.
That was an increase of $12.28 billion from $128.34 billion at the end of the previous month. The increase was the third-largest on record, following $15.88 billion in December 2025 and $15.01 billion in July.
Residents’ foreign-currency deposits refer to foreign-currency deposits held at domestic banks by Korean nationals, domestic companies and foreigners who have lived in Korea for at least six months.
By currency, U.S. dollar deposits led the overall increase.
Dollar deposits rose by $10.99 billion in one month, significantly increasing the balance.
The increase came as large companies’ export proceeds and securities firms’ investor deposits flowed in on a large scale, while preemptive demand to buy dollars also emerged.
In fact, the won-dollar exchange rate fell from 1,424.0 won at the end of July to 1,368.6 won at the end of August, fueling dollar-buying demand from investors seeking to purchase dollars near the exchange-rate low.
Deposits in other major currencies also increased. Euro deposits rose by $1.1 billion from the previous month, helped by the receipt of export proceeds and other current-account payments. Yen deposits also grew by $320 million, supported by inflows of investor deposits into securities firms.
By type of economic entity, corporate deposits surged by $10.93 billion to $123.49 billion, accounting for most of the overall increase.
Personal deposits also rose by $1.35 billion to $17.12 billion, maintaining a solid upward trend.
At domestic banks, foreign-currency deposits increased by $8.47 billion to $110.86 billion. Branches of foreign banks recorded $29.76 billion, an increase of $3.81 billion.
[email protected] Jung Sang-gyun Reporter