Foreign-currency deposits held by South Korean banks fell for the first time in three months in July amid sharp weakening in the Korean won versus major currencies.

According to data released by the Bank of Korea (BOK) on Monday, foreign currency deposits came to $69.67 billion as of end of July, down $710 million from the end of June. It is the first time foreign currency savings fell in three months after deposits gained $2.41 billion in May from the previous month and $4.77 billion in June.

Foreign currency deposits include those held by Korean nationals and companies, foreigners that have lived in Korea for six months or longer and foreign companies operating in Korea.

Dollar-denominated savings shrank $300 million from the previous month to $59.6 billion in July. Dollar holdings by companies stood at $46.9 billion, down $190 million over the same period, and by individuals $12.7 billion, down $110 million.

Steep strengthening in the U.S. dollar against the Korean won in July had led companies to dump some of their holdings, the BOK said. The dollar added 28.4 won ($0.023) from 1,154.7 won at the end of June to 1,183.1 won at the end of July.

A further fall in dollar-denominated savings, meanwhile, was offset by deposits from new corporate bond and stock offerings in overseas.

Deposits held in yen also dropped $170 million from the previous month to $3.99 billion in July. The BOK said companies sold their yen holdings amid strengthening of the Japanese currency. Euro-denominated savings also dropped $70 million to $3.32 billion and yuan deposits $80 million to $1.27 billion during the same period.

By holder, companies held $55.12 billion in foreign-currency savings, down $550 million, while individuals $14.55 billion, down $160 million, data showed. Local banks held $59.18 billion in foreign-currency deposits, down $1.36 billion, while local branches of foreign banks held $10.49 billion, up $650 million during the same period.

By Kim Yeon-joo and Lee Eun-joo

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]