USD deposits at major banks jump 36% as KRW recovers

By Maekyung News Service

South Korean investors are pouring money into foreign-currency deposits as the won strengthens, betting that the dollar and yen will rebound from multiyear lows.

According to banking industry data on Monday, dollar deposits at the country’s five major banks totaled $85.49 billion as of Friday, up 35.7 percent from the end of May. Balances have risen steadily since hitting a year-to-date low of $58.78 billion in March.

The five banks are KB Kookmin, Shinhan, Hana, Woori and NH Nonghyup.

Yen deposits also climbed 34.6 percent over the same period to 1.1841 trillion yen as of Friday, up 34.6 percent from the end of May.

They increased by 33.6 billion yen in October alone.

Investors are seeking to buy foreign currencies at relatively low prices in anticipation of a rebound. The won closed at 1,335.1 won per dollar in daytime trading on Monday, its strongest closing level since October 4, 2024. After weakening to around 1,555 per dollar in early July, the won recovered sharply and returned to the 1,300 range in mid-August.

The won has also strengthened against the yen. The exchange rate recently moved into the 840-won range per 100 yen, approaching levels last seen in early January 2008, after falling to around 970 won in June.

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