Dollar deposits by companies at local banks rose at the fastest pace of the year in November.

According to industry data, companies’ outstanding dollar deposits at five major commercial banks, including KB Kookmin Bank and Shinhan Bank, reached 53-point-seven billion dollars as of Thursday, up seven-point-nine billion dollars or 21 percent from a month earlier.

The increase marks the largest monthly gains so far in 2025.

Dollar deposits are financial products that allow customers to exchange won for dollars and deposit the funds, then withdraw or convert them back into won upon maturity.

Typically, when the dollar strengthens, investors tend to cash in their gains and dollar deposit balances fall, but dollar deposits rose in November despite the stronger U.S. dollar.

The rise is seen as the result of companies seeking to increase their dollar holdings amid rising investments in the United States and heightened uncertainties in the foreign exchange market.