Corporate ‘dollar deposits’ increase by 21% in one month
Build up an unusual bank without taking profits
Banking sector says,”There are a lot of funds waiting to be invested in the United States.”
Dollar loans from the five major banks also increased slightly

Recently, with the won-dollar exchange rate continuing to soar in the 1,470 won range, the balance of ‘dollar deposits’ registered by companies at major commercial banks was calculated to have increased by about 21% in one month. This is the largest increase this year.Analysis suggests that this is due to the influence of large domestic companies, especially in the shipbuilding and semiconductor industries, storing dollars as deposits instead of exchanging them for investments in the United States.

● Reserve funds for investment in the U.S. tied to dollars

According to the financial sector on the 30th, the corporate dollar deposit balance of the five major banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup) as of the 27th of last month was calculated to be about $53.744 billion (about 79 trillion won). it increased by about 21% from the end of October ($44.325 billion).

Typically, when the won-dollar exchange rate rises (the value of the won falls), dollar deposit balances decrease as investors take profits. The monthly average exchange rate in november was 1,461.23 won, up 6.8% from the previous month’s monthly average (1,367.70 won). An unusual phenomenon is occurring where the exchange rate has risen but dollar deposits are increasing.

The banking industry explained that the main reason why companies continue to hold dollars is as they have meaningful funds waiting to be invested in the United States. On October 29, the government announced that it would invest $350 billion, including $150 billion (approximately KRW 220.5 trillion) in the ‘MASGA’ project, a shipbuilding industry cooperation project, following the conclusion of tariff negotiations between Korea and the United States. A bank official said, “In addition to the $150 billion allocated to Masuga, semiconductor companies also need to make large-scale investments in the United States, so they appear to be holding off on converting their dollars.”

Korea’s Bio-industry gains Momentum with Government Support and Investment

Reporter Shin Moo-kyung yes@donga.com
Reporter Joo Hyun-woo woojoo@donga.com

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South Korea’s bio-industry is experiencing significant growth, fueled by considerable government investment and a surge in private sector participation. Recent policy initiatives and financial backing are positioning the nation as a key player in the global biotechnology landscape.

The Ministry of health and welfare announced a thorough plan to invest ₩2.2 trillion (approximately $1.6 billion USD) into the bio-health industry by 2030. This investment will focus on key areas including new drug development, precision medicine, and digital healthcare solutions. A significant portion of the funding will be allocated to research and development, aiming to accelerate the discovery of innovative treatments and diagnostics. Ministry of Health and Welfare

Several major Korean companies have also announced significant investments in the bio-industry. Samsung Biologics,a leading contract development and manufacturing organization (CDMO),is expanding its production capacity with a new plant in Incheon,anticipating increased demand for biopharmaceutical manufacturing services. Samsung Biologics Celltrion, another prominent biopharmaceutical firm, is investing heavily in the development of biosimilars and novel antibody drugs. Celltrion

Experts attribute the growth to several factors, including a highly skilled workforce, advanced research infrastructure, and a supportive regulatory environment. The Korean government has streamlined the approval process for new drugs and medical devices, making it easier for companies to bring innovative products to market.

The focus on digital healthcare is also proving to be a major driver of growth. Korean companies are developing innovative digital tools for disease management, remote patient monitoring, and personalized medicine. These technologies are expected to play a crucial role in improving healthcare access and outcomes, particularly in an aging population.

Despite the positive outlook,challenges remain. Competition from established global players is fierce, and Korean companies need to continue investing in research and development to maintain their competitive edge. Furthermore, attracting and retaining top talent is crucial for sustained growth.

Though, with continued government support and private sector investment, South Korea’s bio-industry is poised for continued success, solidifying its position as a global leader in biotechnology and healthcare innovation.