Seoul: Foreign currency deposits in South Korea rose for the second consecutive month in May, driven by increased dollar savings, as central bank data revealed on Friday. Outstanding foreign currency-denominated deposits held by residents reached US$112.25 billion at the end of May, marking an increase of $1.57 billion from the previous month.

According to Yonhap News Agency, the figure had previously risen by $8.51 billion in April, reversing a three-month downward trend. The data encompasses deposits held by South Korean citizens, foreigners residing in the country for more than six months, and foreign companies, while excluding interbank deposits.

In terms of currency specifics, U.S. dollar-denominated deposits saw an increase of $2.24 billion, bringing the total to $95.56 billion, continuing its upward trajectory for the second month. Conversely, euro-denominated deposits decreased by $280 million to $6.3 billion, and Japanese yen deposits declined by $690 million to $7.52 billion.

Corporate foreign currency deposits experienced a rise of $2.54 billion, totaling $97.42 billion. Meanwhile, individual holdings saw a decrease of $960 million, settling at $14.83 billion. The Bank of Korea attributed the growth in dollar deposits to higher basic deposits required for derivatives trading amid stock market volatility and increased dollar receipts by exporting companies.