This study examined the relationship between corporate transparency and corporate cash holdings using a total of 2,256 firm-year observations from 2001 to 2004. Prior research has demonstrated that excessive corporate cash holdings may be a product of managers' pursuit of private benefits and can negatively affect firm value. Accordingly, this study hypothesized that as corporate transparency improves, information asymmetry between internal and external information users would be mitigated, monitoring and control costs for managers would decrease, and agency problems would be alleviated, leading to a reduction in corporate cash holding levels. The analysis results are as follows. When the relationship between cash holdings and transparency indices—measured using ownership structure transparency, business status transparency, board of directors transparency, accounting transparency, and the overall average transparency index of these four dimensions—was examined, business status transparency, board of directors transparency, and the overall average transparency index showed a significant negative relationship with corporate cash holdings. This implies that the status of the firm's business and industry has a particularly significant impact on corporate cash holding levels, and that the board of directors, which serves the function of effectively monitoring and supervising managers, exerts considerable influence on managers' cash holding decisions. The remaining indices—ownership structure transparency and accounting transparency—also showed a negative relationship with cash holdings, but the results were not statistically significant. These findings are interpreted as evidence that improved corporate transparency reduces agency problems and restrains managers from holding excessive cash for private benefits. Additionally, as transparency improves and information asymmetry is alleviated, firms' financing costs decrease, enabling them to raise funds at relatively lower costs when desired, thus rendering excessive precautionary cash holdings unnecessary.