This paper empirically revisits the determinants of cash holdings in Korean public and private firms during 2001-2012. The results are twofold. First, there is no decisive theory to explain cash holdings, however, the precautionary motive is significant. Also, this paper examines whether firms hold too much cash reserves in comparison to the past. Abnormal cash during 2005-2012 is calculated by the discrepancy between real cash and estimated cash based on the period of 2001-2004. The gap is not significantly different from zero. In addition, an increase of cash holdings compared to trend in the past is worthwhile because firms with higher abnormal cash holdings invest more, especially in R&D, than those with lower abnormal cash holdings.