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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Corporate dollar deposits in South Korea have surged to their highest level in more than three years as the won-dollar exchange rate remains elevated in the 1,500-won range, prompting exporters to delay currency conversion.
According to financial sector data on June 14, corporate dollar deposits at five major banks—KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank, and NH Nonghyup Bank—reached $54.37 billion as of June 11, the largest since January 2023.
Corporate deposits have steadily increased from $46.2 billion at the end of March to $49.0 billion in April and $50.7 billion in May. So far in June, they have risen by an additional $3.66 billion, marking a 7.2% increase from the end of May.
In contrast, individual dollar deposits declined slightly over the same period, bringing total dollar deposits at the five banks to $66.5 billion as of June 11.
Dollar deposits allow customers to hold funds in U.S. currency, offering potential foreign exchange gains if the won weakens, while also serving as a liquidity management tool for companies handling import payments or foreign-currency liabilities.
Despite government efforts to stabilize foreign exchange markets—including calls by the Ministry of Economy and Finance and the Ministry of Trade, Industry and Energy for exporters such as Samsung Electronics, SK hynix, and Hyundai Motor to promptly convert export proceeds—companies have largely held onto their dollar assets.
The won-dollar exchange rate has remained above 1,500 won since mid-May, averaging 1,523.3 won in June, its highest level since the Asian financial crisis in 1998. Market volatility has also increased, driven by U.S. economic data, Middle East tensions, and foreign capital flows.
Experts expect the exchange rate to fluctuate in the low-to-mid 1,500-won range for the time being, as geopolitical uncertainty and global economic factors continue to weigh on the currency.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
