South Korean Corporate Dollar Deposits Hit Record High Amid Weakening Won

Sunday 6 September 2026 07:56

Corporate dollar deposits at South Korea's five largest banks hit a record high this month, coinciding with the won tumbling to its lowest level against the dollar in nearly two years, according to banking sector data released on Sunday.

The outstanding balances of dollar deposits at the five banks reached $76.98 billion as of Thursday, marking the highest level since the compilation of this data began in May 2021.

The five banks include KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup.

The won was quoted at 1,345 against the dollar on Friday evening, marking the weakest level for the Korean currency since October 8, 2024, when it registered 1,344.6 won to the dollar.

Despite this, the won's value has appreciated by approximately 254.2 won compared to its historic low of 1,588.2 won against the dollar on July 1.

Exporters Delay Converting Revenues

Baek Seok-hyun, an economist at Shinhan Bank’s Trading and Investment Center, stated that the surge in dollar deposits is driven by the inflow of export revenues, coupled with exporters delaying the conversion of these earnings into won.

He added that importing companies are also stepping up their dollar purchases in installments, further bolstering the demand for the U.S. currency.