Foreign currency deposits hit record high in July

SEOUL, Aug. 13 (Yonhap) -- South Korean residents' foreign currency savings rose to an all-time high in July thanks to increased overseas debt sales by state-run firms and the country's widening trade surplus, the central bank said Thursday.

Foreign currency deposits by residents amounted to an outstanding US$31.25
billion as of the end of July, up $2.98 billion from the previous month and
marking the highest level in history, according to the Bank of Korea (BOK).
In June and July alone, savings increased by $4.52 billion, while in the
January-July period, they advanced by a total of $4.86 billion, it added.
"Amid easing global financial rout, debt sales by state-run companies increased.
As the trade surplus has been in the black, money earned from exports steadily
rose," a BOK official said.
Since June, Korean state-run companies have issued a bulk of overseas bonds to
raise foreign currency funds as global financial markets revived. They sold debts
worth of $3.39 billion in June and July alone, with total bond issuance by such
companies reaching $4.05 billion in the first seven months of this year.
Korea Hydro & Nuclear Power Co. floated foreign currency-denominated bonds worth
of $1 billion in June, and Korea Gas Corp. sold $500 million worth of global
bonds in July.
The country's large trade surplus also contributed to a rise in foreign currency
savings as dollar inflows increased, prompting more companies to deposit exporter
earnings, the BOK said.
South Korea's trade surplus stood at a record $7.27 billion in June and $5.14
billion in July, respectively, as imports shrank faster than exports.
U.S. dollar deposits gained by $4.75 billion in June and July to $27.03 billion,
while Japanese yen-denominated savings declined $150 million to $1.86 billion and
euro savings dipped $90 million to $1.94 billion, it added.
sooyeon@yna.co.kr