South Korea's foreign reserves surge by record $14.33B in August

Key facts

• South Korea's foreign reserves rose by $14.33 billion in August, the largest monthly increase on record.
• Total foreign reserves reached $442.28 billion by the end of August.
• The Bank of Korea cited increased dollar-denominated assets and management profits as reasons for the surge.
• Foreign securities holdings increased by $7.07 billion, while foreign currency deposits rose by $7.17 billion.

South Korea's foreign reserves experienced their largest monthly increase on record in August, climbing by $14.33 billion to reach $442.28 billion, according to data from the Bank of Korea (BOK). This marks the highest level for the country's foreign reserves since May 2022. The significant rise is attributed to an increase in dollar-denominated assets, including foreign securities and foreign currency deposits held by financial institutions, as well as management profits. Foreign securities, primarily U.S. Treasuries, grew by $7.07 billion, while foreign currency deposits increased by $7.17 billion. The substantial gain in reserves was also influenced by foreign exchange authorities purchasing approximately $20 billion from SK Hynix's American depositary receipt listing proceeds.