Seoul: Foreign currency deposits in South Korea experienced their most significant decrease in nearly two years in October, driven by corporate repayment of foreign-currency obligations and overseas investments by pension funds, as reported by central bank data.

According to Yonhap News Agency, data from the Bank of Korea (BOK) indicated that the total foreign currency-denominated deposits held by residents dropped to US$101.83 billion by the end of October. This represents a decrease of $5.26 billion from the previous month, marking the most substantial monthly fall since January 2024, when deposits fell by $5.78 billion. This was also the second consecutive month of decline.

Residents, as defined in the data, include South Korean citizens, foreigners residing in the country for over six months, and foreign companies, excluding interbank deposits. A BOK official attributed the decline primarily to companies repaying foreign-currency borrowings, a reduction in investor deposits at securities firms, and overseas investment activities by pension funds.

Corporate foreign currency deposits saw a decrease of $5.5 billion, settling at $86.76 billion, whereas individual holdings increased by $240 million to reach $15.07 billion. In terms of currency, U.S. dollar-denominated deposits fell by $5.08 billion to $85.63 billion, and Japanese yen deposits decreased by $260 million to $8.63 billion. Euro deposits remained nearly unchanged at $5.01 billion, while Chinese yuan deposits rose by $60 million to $1.25 billion, as per the data.