Seoul, Nov 30 (IANS) Dollar deposits by companies at local banks rose at the fastest pace of the year in November as firms accelerated efforts to increase their dollar holdings amid a strengthening U.S. dollar, industry data showed on Sunday.

Companies’ outstanding dollar deposits at five major commercial banks, including KB Kookmin Bank and Shinhan Bank, reached US$53.7 billion as of Thursday, up 21 percent from $44.3 billion a month earlier, according to the data, reports Yonhap news agency.

The increase marks the largest monthly gain in 2025. Dollar deposits are financial products in which won is converted into dollars and deposited, then withdrawn or converted back into won upon maturity.

Typically, when the dollar strengthens, investors tend to realise profits, leading to a decline in dollar deposit balances.

However, dollar deposits rose in November despite the stronger U.S. dollar.

Insiders said companies expanded their dollar holdings amid rising U.S. investment and heightened foreign exchange market uncertainties.

“Following U.S. President Donald Trump’s election last December, corporate currency exchange transactions and dollar deposit balances hit record highs,” an official at a local bank said. “This month saw the largest increase so far this year.”

Individual investors have also increased their dollar deposits.

Their outstanding dollar deposits reached $12.2 billion as of Thursday, marking the fourth consecutive monthly rise since August.

Growing investment in overseas stock markets and expectations of a stronger dollar have fuelled demand among individual investors.

“Amid recent volatility in the foreign exchange market, there is a trend, particularly among companies, to increase foreign currency holdings,” a separate commercial bank official said.

The South Korean won has sharply depreciated against the U.S. dollar in recent months despite authorities’ repeated verbal interventions, sliding from around 1,390 won per dollar on Sept. 1 to about 1,470 won on Friday.

—IANS

na/