Industry data released on Sunday showed that corporate dollar deposits at major South Korean banks hit an all-time high this month, as the won slid to a near two-year low against the U.S. dollar.

As of Thursday, the combined dollar deposit balance at the country's five largest local banks reached $76.98 billion, the highest since this statistical category was first established in May 2021. The five banks are KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank, and Nonghyup Bank.

At 10:30 p.m. on Friday, the won was quoted at 1,345 per dollar, marking its strongest level since October 8, 2024, when the exchange rate stood at 1,344.6. Compared to the historic low of 1,588.2 won per dollar recorded on July 1, the won has since rebounded by 254.2 won.

Baek Seok-hyun, an economist at Shinhan Bank's Tech & Finance Center, said: "Exporters have been receiving foreign currency revenue but delaying conversion into won, which has driven up the scale of dollar deposits. Importers have also been actively purchasing dollars in stages." Market demand for converting won into dollars is also on the rise.

Data showed that during the first three days of this month, the total won-to-dollar conversion volume at these five banks reached $60 million. Monthly conversion volumes stood at $275 million in February, fell sharply to $164 million in June, and rebounded to $349 million in July.

A representative from Nonghyup Bank noted: "As the won depreciated in July and August, individuals began buying dollars, and demand for dollars to invest in U.S. equities has also increased."