As of the end of June, corporations' dollar deposits stood at $85.58 billion, up $2.59 billion from the previous month, the Bank of Korea said on the 27th. Following the previous month ($82.99 billion), it set an all-time high for a second straight month. The share accounted for by corporations' dollar deposits also expanded from 86.8% to 87.5%.
The Bank of Korea said it was because foreign investors increased their investment in domestic derivatives (futures and options). The dollar margin paid by foreigners to conduct a derivatives transaction is tallied as corporations' dollar deposits. A Bank of Korea official said, "Foreign securities firms and others often pay their margins in foreign currency," adding, "Representative products include KOSPI 200 futures and options."
Individual dollar deposits, on the other hand, fell. According to "Trends in residents' foreign currency deposits in June" released that day by the Bank of Korea, the balance of individual dollar deposits was $12.22 billion, down $350 million from the previous month. With the strong dollar persisting, holders sold their dollars to lock in gains. Throughout June, the won-dollar exchange rate stayed above 1,500 won per $1.
Residents' foreign currency deposits, including all major currencies, came to $113.33 billion, up $1.08 billion from the end of the previous month. Japanese yen deposits fell $410 million to $7.12 billion, and euro deposits decreased $460 million to $5.84 billion. The Bank of Korea explained, "Yen deposits decreased due to payments for current transactions, and euro deposits fell due to loan repayments by some corporations."