Seoul: Foreign currency deposits in South Korea declined by the most in about two years in October amid increased corporate repayment of foreign-currency borrowings and overseas investments by pension funds, central bank data showed on Friday.
Outstanding foreign currency-denominated deposits held by residents came to $101.83 billion as of end-October, down $5.26 billion from a month earlier, according to data from the Bank of Korea (BOK), reports Yonhap news agency.
It marked the sharpest monthly fall since January 2024, when deposits declined by $5.78 billion, and the second straight month of decrease.
Residents include South Korean citizens, foreigners who have lived in the country for more than six months, and foreign companies. The data excludes interbank deposits.
“The decline was due mainly to companies’ repayment of foreign-currency borrowings, a drop in investor deposits at securities firms and overseas investment executions by pension funds, among other factors,” a BOK official said.
Corporate foreign currency deposits fell $5.5 billion on-month to $86.76 billion, while individual holdings gained $240 million to $15.07 billion.
By currency, U.S. dollar-denominated deposits dropped $5.08 billion to $85.63 billion, and Japanese yen deposits fell $260 million to $8.63 billion.
Euro deposits were nearly unchanged at $5.01 billion, while Chinese yuan deposits increased $60 million to $1.25 billion, the data showed.
Meanwhile, South Korean stocks traded sharply lower late Friday morning as investors dumped tech shares amid lingering uncertainties over artificial intelligence (AI) technology.
The benchmark Korea Composite Stock Price Index (KOSPI) lost 39.81 points, or 1 per cent, to 3,947.1, as of 11:20 a.m.
Most shares traded in negative territory. Market bellwether Samsung Electronics sank 1.93 percent, and SK hynix fell 0.74 per cent.
Top carmaker Hyundai Motor retreated 0.19 percent, and its sister Kia dropped 0.26 per cent.
Leading battery maker LG Energy Solution tumbled 5.94 per cent, and defense giant Hanwha Aerospace declined 2.2 per cent.
The local currency was quoted at 1,465.5 won against the greenback as of 11:20 a.m., down 0.25 won from the previous session’s close.
(IANS)
