Key facts
- South Korea's foreign reserves increased by $370 million in June to $427.36 billion.
- The OECD has cautioned that South Korea's dependence on semiconductor exports makes it susceptible to external shocks.
- The Korean won weakened against the U.S. dollar, trading above 1,500 won for the entire month of June.
- Foreign securities, a component of foreign reserves, decreased by $330 million in June.
- South Korea's pharmaceutical exports reached a record $10.44 billion in 2025.
South Korea's foreign reserves saw an increase in June, reaching $427.36 billion, a rise of $370 million from the previous month. This upturn follows a $880 million decline in May and occurred despite the central bank's efforts to stabilize the exchange rate. The Bank of Korea attributed the growth to increased foreign currency deposits from financial institutions, even with measures like foreign exchange swaps with the National Pension Service.
Throughout June, the Korean won remained under pressure, trading above the significant 1,500 won per U.S. dollar level due to net selling of local stocks by foreign investors. The currency closed the month at its weakest point against the dollar since March 2009. The OECD has concurrently issued a warning regarding South Korea's economic vulnerability, citing its heavy reliance on semiconductor exports, which exposes the nation to external shocks and market volatility.
Foreign securities, a major component of the reserves, decreased by $330 million to $380.34 billion, representing 89% of the total reserves. However, the value of foreign currency deposits rose by $920 million to $22.27 billion. Holdings of special drawing rights decreased by $140 million, while gold bullion reserves remained unchanged. South Korea's reserve position with the International Monetary Fund also saw a reduction of $90 million. As of the end of May, South Korea ranked 13th globally in foreign reserve holdings.