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Foreign currency deposits snap 4-month fall in May on dividend income

June 23, 2023

Foreign currency deposits increased in May to snap their four-month decline on increased dividends from overseas, central bank data showed Friday.

Residents’ outstanding foreign currency-denominated deposits reached US$96.79 billion at end-May, up $5.4 billion from the previous month, according to the data from the Bank of Korea.

Residents include local citizens, foreigners staying in South Korea for more than six months and foreign companies. The data excludes interbank foreign currency deposits.

The central bank said the rise in foreign currency deposits came on increased dividends delivered by companies’ overseas affiliates.

Corporate deposits came to $82.67 billion as of May, up $5.13 billion from the previous month, with individual holdings rising by $270 million to $14.12 billion.

Dollar-denominated deposits rose by $3.09 billion to $82.29 billion last month, and euro-denominated deposits increased by $1.29 billion to $5.74 billion, according to the data.

Japanese yen-denominated deposits increased by $930 million to $6.25 billion over the cited period.

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