Seoul: Foreign currency deposits in South Korea experienced a notable increase for the second consecutive month in January, as businesses sought to bolster their dollar reserves amidst growing uncertainties, according to data released by the central bank on Monday.

According to Yonhap News Agency, the outstanding foreign currency-denominated deposits held by residents reached US$103.44 billion by the end of January. This marks a $2.14 billion increase from the previous month, based on figures from the Bank of Korea (BOK). This trend follows a similar rise seen in December, marking the second straight month of growth after a period of decline.

The data considers residents as local citizens, foreigners residing in South Korea for over six months, and foreign companies, while excluding interbank foreign currency deposits. The upsurge in deposits is attributed to companies augmenting their fund reserves for import settlements and investments amid both domestic and international uncertainties.

South Korea is grappling with political instability following President Yoon Suk Yeol's unexpected martial law declaration on December 3, 2024. Additionally, the nation is preparing for potential repercussions from U.S. President Donald Trump's new tariff policies and other protectionist actions.

Corporate deposits saw a significant rise to $89.2 billion by the end of January, an increase of $2.08 billion from the previous month, while individual deposits grew by $60 million to reach $14.24 billion. In terms of currency, U.S. dollar-denominated deposits increased by $1.88 billion to $88.31 billion, Japanese yen deposits climbed by $110 million to $8.29 billion, and euro deposits rose by $80 million to $4.45 billion.

The Korean won depreciated to 1,455.79 won per U.S. dollar in January, down from 1,434.42 won the previous month, marking a 10 percent decline from the previous year.