Foreign currency deposits rise for first time in 3 months: BOK

Seoul, Dec 30 (IANS) Foreign currency deposits in South Korea rose for the first time in three months in November, central bank data showed on Tuesday.

Outstanding foreign currency-denominated deposits held by residents stood at US$103.55 billion as of end-November, up $1.71 billion from a month earlier, according to the data from the Bank of Korea (BOK), reports Yonhap news agency.

The total had reached the highest level in 31 months in August but declined over the following two months, mainly due to increased corporate repayment of foreign-currency borrowings and overseas investments by the national pension fund.

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.

“November’s increase came as companies received payments for current transactions and parked funds to be converted for repayment of foreign-currency borrowings, among other factors,” a BOK official said.

Corporate foreign currency deposits gained $1.67 billion on-month to $88.43 billion, while individual holdings rose $40 million to $15.11 billion.

By currency, U.S. dollar-denominated deposits climbed $1.96 billion to $87.59 billion, while Japanese yen deposits fell $500 million to $8.13 billion.

Euro deposits grew $390 million to $5.4 billion, while Chinese yuan deposits declined $100 million to $1.14 billion, the data showed.

Meanwhile, South Korean stocks traded slightly lower late on Tuesday morning, despite gains in big-cap tech shares, as investors moved to cash in recent gains in the final trading session of the year.

The benchmark Korea Composite Stock Price Index (KOSPI) slipped 5.92 points, or 0.14 percent, to 4,214.64 as of 11:20 a.m.

The index opened lower, tracking overnight losses on Wall Street, and had moved within a tight range.

Foreign and institutional investors were net sellers, offsetting solid buying by retail investors.

The market had risen for the previous two sessions on strong gains in big-cap semiconductor shares, nearing its all-time high of 4,221.87 set on Nov. 3.

—IANS

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