S. Korea Sees Second Month of Falling Foreign Currency Deposits

South Korea Sees Second Consecutive Drop in Foreign Currency Deposits in February​

Seoul, March 23 – Foreign currency deposits in South Korea declined for the second straight month in February, driven by reductions in both corporate and individual holdings, according to data released by the Bank of Korea (BOK) on Monday.

Outstanding foreign currency-denominated deposits held by residents stood at US$117.53 billion at the end of February, down US$490 million from January, Yonhap News Agency reported. January had already recorded a decline, the first since October, following record highs in November and December amid a weakened won and heightened volatility in the foreign exchange market.

Residents accounted for in the data include South Korean citizens, foreigners who have lived in the country for more than six months, and foreign companies. Interbank deposits are excluded from the figures.

Corporate foreign currency deposits fell by US$450 million in February to US$100.23 billion, while individual holdings declined US$40 million to US$17.31 billion. By currency, U.S. dollar deposits dropped US$340 million to US$96 billion, and Japanese yen deposits fell US$210 million to US$9.3 billion. In contrast, euro-denominated deposits increased US$200 million to US$9.59 billion, while Chinese yuan deposits slipped US$150 million to US$1.23 billion.

Budget Minister Nominee Highlights Need for Supplementary Budget Amid Energy Concerns​

Meanwhile, Budget Minister nominee Park Hong-keun emphasized the importance of a supplementary budget to stabilize energy supplies amid the ongoing Middle East crisis. Speaking at a parliamentary confirmation hearing, Park said the proposed bill should include measures to manage oil reserves and ensure supply chain resilience.

“Although a fuel price cap is currently in place, a supplementary budget is inevitable given the uncertainties, as it is difficult to predict how long the Middle East situation will continue,” Park said.

In response to rising global oil prices, the South Korean government has implemented a price cap system for oil products supplied by refineries to gas stations. The minister added that the extra budget should also focus on securing key resources for future supply chain stability and diversifying supply routes, including the strategic stockpiling of oil.