South Korea’s Foreign Reserves Rise to 33-Month High of US$428.82 Billion

Post by : Bianca Suleiman

Seoul, November 5 – South Korea's foreign exchange reserves increased to their largest level in nearly three years, reaching US$428.82 billion at the end of October, the Bank of Korea reported on Wednesday. This marks the fifth straight month of growth, reflecting an improved external liquidity position.

The month-on-month rise of US$6.8 billion was driven by higher investment returns together with proceeds from newly issued foreign currency-denominated FX stabilization bonds. Analysts say that consistent inflows and active reserve management have helped shore up buffers despite persistent global economic uncertainty.

A breakdown of the reserve components reveals several shifts:

• Foreign securities, including US Treasuries, fell modestly by US$460 million to US$377.96 billion, accounting for 88.1% of total reserves.

• Foreign currency deposits increased by US$7.4 billion, rising to US$25.94 billion.

• Special drawing rights (SDRs) held steady at US$15.71 billion, while gold reserves remained unchanged at US$4.79 billion.

• South Korea's IMF reserve positions edged down by US$80 million, now totaling US$4.41 billion.

On the world stage, South Korea remains the ninth-largest holder of foreign reserves, behind economies such as China, Japan, Switzerland, Russia and India. Experts note that substantial reserves help mitigate currency swings, underpin international trade, and bolster investor confidence amid volatile market conditions.

The latest increase highlights South Korea's ongoing emphasis on financial stability and proactive reserve management as global interest-rate and trade dynamics continue to evolve.