[Young journalist Jion Choi] July resident foreign currency deposits reached 128.3 billion dollars… dollar deposits surpassed 100 billion dollars for the first time ever. Top 5 major banks recorded maximum gold bar sales revenue after January… expansion of safe asset demand amid stock market volatility.
 
Amid increasing volatility in the domestic stock market, market funds are being relocated to safe assets such as dollars and gold. As the won-dollar exchange rate steeply declines, demand to secure dollars is increasing, and as international gold prices return to an upward trend, funds are flowing into gold bars and gold banking. In the banking sector, analysts say there are signs of a ‘reverse money move,’ in which funds that had moved into the stock market are returning to deposits and safe asset products—has been revealed.

Dollar deposit balance speed up since July
According to the “Mid-July 2026 resident foreign currency deposit trend” presented by Bank of Korea, resident foreign currency deposits in domestic banks last month were recorded at 128.3 billion dollars. Increased by 15.01 billion dollars compared to the previous month, it was the highest level since related statistics began in June 2021. The monthly increase was also the second highest after the 15.88 billion dollar increase recorded last December.
 
Resident foreign currency deposits refer to foreign currency deposited in domestic foreign currency banks by residents, domestic enterprises, foreigners living in Korea for more than six months, and foreign enterprises operating in Korea. The foreign currency account balances decreased from January to March this year, but turned upward in April and have continued to grow for four consecutive months.

The upward trend was led by dollar deposits. Last month, dollar deposits increased by 11.12 billion dollars to 108.22 billion dollars. This was the first time dollar deposits exceeded 100 billion dollars since statistics began. The proportion of dollar deposits in total resident foreign currency deposits reached 84.9%.
 
The won-dollar exchange rate fell by 125.4 won, from 1549.4 won at the end of June to 1424.0 won at the end of July. The burden of purchasing dollars dropped further in July, entering 1370 won range. As the exchange rate falls, demand from companies and individuals can increase because they are able to buy more dollars with Korean won in preparation for future exchange rate rebounds, overseas investments, or payments.

This trend is continuing in August. The dollar deposit balance of the top five major banks, including KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank, and Nonghyup Bank, totaled 77.58 billion dollars as of the 25th. This represents an increase of approximately 6.14 billion dollars in less than a month compared to the end of July. As demand for profit-taking increased during the period of rising exchange rates earlier this year, dollar deposits had declined, but they are now rapidly increasing again due to the stronger Korean won.

Gold bar sales ‘leap’ as gold prices rise again.
Funds are also rushing into gold-related banking products. Since the beginning of August, gold bar sales at the top five major banks reached 82.96 billion won by the 20th, which is 2.8 times the July sales amount of 30.01 billion won. This is the highest monthly sales level since January, when gold prices were soaring.

The gold bank balance handled by KB Kookmin Bank, Shinhan Bank, and Woori Bank increased by 94.8 billion won from the end of July, reaching 1.8107 trillion won as of the 20th. This was the first month-on-month increase in gold bank balances in seven months since January. The international gold price, after declining to 3972.94 dollars per troy ounce on July 16, recovered to 4603.56 dollars on August 21, leading to increased demand for gold investment. It stood at 3,607.27 dollars on August 28.
 
An official from the Bank of Korea advised, “Depending on the monetary policy of the US Federal Reserve and US fiscal instability, if volatility in the dollar’s value continues, the movement toward reducing risky assets and holding dollars and gold may persist.” The official added, “Since dollars and gold also involve price volatility risks, diversification, rather than concentrated investment expecting short-term gains, would be more appropriate.”  

▶원문 기사: “환율 내릴 때 사두자”…은행 달러예금 사상 최대, 금에도 뭉칫돈

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