Foreign currency deposits in South Korea rose for a second consecutive month in December, hitting an all-time high amid weakness in the won. According to Bank of Korea data, outstanding deposits held by residents reached $119.43 billion, up $1.59 billion from the previous month. The surge reflects increased dollar holdings by companies and individuals due to currency volatility.
Bank of Korea data showed that outstanding foreign currency-denominated deposits held by residents stood at $119.43 billion at the end of December, up $1.59 billion from a month earlier. This marked the highest level since the central bank began compiling relevant data in June 2012. The previous record was set in August 2025, but deposits declined over the following two months before rebounding in November.
Residents include South Korean citizens, foreigners who have lived in the country for more than six months, and foreign companies, with interbank deposits excluded. "Companies and individuals boosted their dollar holdings amid heightened volatility in the won-dollar exchange rate around the end of last year. Funds for exporters' payment settlements and standby funds earmarked for overseas investment, in particular, flowed into foreign currency deposits," a BOK official said.
Corporate foreign currency deposits jumped $14.07 billion from a month earlier to a record high of $102.5 billion, while individual holdings rose $1.82 billion to $16.93 billion. By currency, U.S. dollar-denominated deposits increased $8.34 billion to $95.93 billion, Japanese yen deposits gained $870 million to $9 billion, euro-denominated deposits climbed $6.35 billion to $11.75 billion, and Chinese yuan deposits rose $310 million to $1.45 billion.
The won had hovered near the closely watched 1,470 won level against the U.S. dollar, pressured by broad dollar strength, geopolitical risks, and strong overseas equity investment by local investors, prompting authorities to issue verbal interventions and roll out various policy measures. Amid volatility, the currency was quoted at 1,465.8 won per dollar on Friday.
