South Korea's corporate dollar deposits hit record high as export earnings surge

Resident foreign‑currency deposits at South Korean banks rose to $113.33 billion by the end of June, the largest amount in four months, according to the Bank of Korea. Dollar‑denominated deposits reached $97.8 billion, the highest level since June 2012. Corporate dollar deposits jumped to $85.58 billion, a new record, driven by strong semiconductor, shipbuilding and logistics export earnings and inflows from overseas equity investors. Corporate deposits increased by $15.8 billion, while personal dollar deposits fell by $5 billion. In contrast, yen and euro deposits each declined by about $0.4 billion. The Bank of Korea noted that a higher won‑to‑dollar exchange rate encouraged individuals to sell dollars, while corporations retained earnings abroad.

The surge reflects robust export demand and a shift in deposit behavior, highlighting the importance of foreign‑exchange reserves for South Korean firms amid a volatile currency market.