Foreign currency deposits in South Korea continued to slip for the second month in a row this March, with companies pulling funds for overseas investments and import payments, according to the Bank of Korea. The total amount of foreign currency held by residents—including long-term foreign nationals and foreign firms—stood at $96.94 billion at the end of March, dropping by $1.59 billion from the previous month.
A big part of the decline came from corporate accounts. Businesses withdrew funds primarily to fuel international investments and settle import bills. Dollar-denominated deposits saw the biggest cut, falling by $1.42 billion, while Euro holdings also took a hit, partly because some companies decided to cash in on the favorable won-euro exchange rate. Altogether, corporate deposits shrank to $83.39 billion, while individuals held $13.55 billion—a $360 million decrease.
Interestingly, not all currencies followed the downward trend. Yen-denominated deposits actually grew, rising by $110 million to $7.87 billion. While the overall picture points to a cautious shift in capital amid global financial activity, the rise in yen holdings hints at diversified strategies among South Korea’s financial players.
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(Source: Korea Times)
