The number of foreign currency accounts in South Korea reached nearly 13 million as overseas travel rebounded and interest in U.S. stock investments grew.
Figures from the country’s five major banks—KB Kookmin, Shinhan, Hana, Woori, and NH NongHyup—show individual foreign currency accounts totaled 12.88 million in the second quarter. That represents an increase from 7 million at the end of 2023.
From niche product to everyday tool
These accounts were once used mainly by wealthy clients and students studying abroad. Now, they serve a broader range of customers. The change follows a rise in overseas travel, with 8.34 million outbound trips in the first quarter—a 7.1% increase over the same period last year.
Korean residents spent $6.1 billion on overseas card transactions during the quarter, marking a 14% year-on-year increase. Much of that spending involves travel cards, which let users preload foreign currencies and avoid exchange fees. Most of these cards connect directly to foreign currency accounts.
Hana Financial Group’s Travelog, the largest travel card service in the country, now has 11.17 million users. That figure has doubled in two years. Cumulative foreign exchange transactions through the platform have exceeded 7 trillion won.
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Investment demand adds to growth
Retail investment in U.S. stocks has also contributed to the rise. Many Korean investors use these accounts to hold dollars for stock purchases, dividend payments, or sale proceeds. The weak Korean won against the dollar since 2022 has encouraged some consumers to use foreign currency accounts for currency investments.
Total balances, however, have decreased. Deposits in individual foreign currency accounts at the five banks fell 9% from the fourth quarter of last year to $12.7 billion. The average balance per account dropped 12.8% year-on-year to $986, suggesting growth is being driven by widespread everyday use rather than large dollar holdings.
Industry officials said the divergence between rising account numbers and falling balances reflects increasing use of foreign currency accounts for travel, overseas investing and routine foreign exchange transactions, rather than as vehicles for large-scale dollar investments.
Banks have responded by expanding travel-related services.
This expansion continues to reshape how Koreans manage money across borders.
