An official checks U.S. dollar notes at a bank branch of Hana Bank in central Seoul, April 3. Yonhap
Resident foreign currency deposits in Korea fell by the largest margin on record in March as a weaker local currency spurred conversions into the U.S. dollar, central bank data showed Wednesday.
Outstanding foreign currency-denominated deposits held by residents stood at $102.17 billion at the end of March, down $15.37 billion from a month earlier, according to the data from the Bank of Korea (BOK).
It marked the largest decline ever, with the previous record set in February 2023, when the figure fell by $11.73 billion.
Residents include South Korean citizens, foreigners who have lived in the country for more than six months and foreign companies. The data excludes interbank deposits.
By currency, U.S. dollar-denominated deposits fell $10.36 billion to $85.64 billion, marking the sharpest drop ever.
Euro-denominated deposits declined $3.28 billion to $6.31 billion, while Japanese yen deposits fell $1.49 billion to $7.82 billion.
Corporate foreign currency deposits dropped $13.43 billion from a month earlier to $86.8 billion, while individual holdings decreased $1.93 billion to $15.37 billion.
“The decline came as corporate demand for the won increased due to payments to domestic business partners and end-March corporate tax payments, while a rise in the won-dollar exchange rate led to increased currency conversions,” a BOK official said.
The won stood at 1,530.1 per dollar at the end of March, compared with 1,439.7 a month earlier, as the ongoing crisis in the Middle East heightened overall volatility.
