South Korea Foreign Currency Deposits November 2025: First Rise in 3 Months
South Korea's foreign currency deposits rose by $1.71 billion in November 2025, marking the first increase in three months amid strong corporate dollar demand.
South Korea's foreign currency buffer is growing again. According to the Bank of Korea (BOK), resident foreign currency deposits rose for the first time in three months in November. The outstanding balance reached $103.55 billion as of the end of the month, up by $1.71 billion from October, driven largely by corporate transactions.
South Korea Foreign Currency Deposits November 2025 Analysis
Corporate demand was the primary engine behind the $1.71 billion jump. Corporate holdings increased by $1.67 billion to total $88.43 billion. In contrast, individual deposits saw a modest gain of just $40 million, totaling $15.11 billion. BOK officials noted that companies parked funds received from exports to prepare for foreign-currency debt repayments.
Dollar Dominance Continues While Yen Slips
The breakdown by currency reveals a strong preference for the greenback. U.S. dollar-denominated deposits climbed by $1.96 billion to $87.59 billion. Conversely, Japanese yen deposits dropped by $500 million to $8.13 billion, and Chinese yuan holdings also edged down by $100 million. Euro deposits showed growth, rising by $390 million.
Currency deposits are highly sensitive to exchange rate volatility. Investors should be aware of potential foreign exchange losses if the Korean won strengthens significantly.
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South Korea's National Pension Service (NPS) has resumed strategic FX hedging via a currency swap with the BOK to defend the won as the exchange rate neared a 16-year low.
The Bank of Korea (BOK) has outlined its 2026 monetary policy, stating that any further interest rate cuts will depend on a careful assessment of inflation, growth, and financial stability.