Foreign currency deposits at South Korean banks rose to a fresh high in October largely due to a gain in the country’s trade surplus, the central bank said Tuesday.

Outstanding foreign currency-denominated deposits held by local residents reached a record $39.39 billion as of the end of October, up $130 million from the previous month, according to the Bank of Korea.

Residents in this case include individual citizens and firms but not foreign nationals with residency status. The data also excludes inter-bank foreign currency deposits.

The BOK said exporters parked more money in such deposits as export earnings rose amid the trade surplus and corporate sales of overseas bonds shot up.

South Korea’s trade surplus is estimated to have more than doubled last month to $3.8 billion from a year earlier, with exports expected to have posted a 1.2 percent on-year gain to $47.2 billion, according to a tentative report by the Ministry of Knowledge Economy.

Companies’ holdings of foreign currency deposits rose $20 million on-month to $35.45 billion while such deposits held by individuals increased $110 million to $3.94 billion, continuing the gain since June, the central bank added.

In late June, the government unveiled plans to encourage local banks to increase the foreign currency deposit balance in a bid to build a safety net from external shocks.

Foreign currency savings accounted for about 3 percent of total bank deposits as of end-April, the latest data available showed.

The government aims to raise that ratio to 10 percent. (Yonhap News)