South Korea’s Reserves Climb to 33-Month Peak of US$428.82 Billion

Seoul, November 5 – South Korea closed October with foreign reserves totaling US$428.82 billion, the highest level in 33 months, the Bank of Korea said Wednesday. This marks the fifth month in a row of rising reserves, underscoring the nation’s resilient external position.

The month-on-month increase of US$6.8 billion versus September reflected contributions from and the effect of newly issued foreign currency FX stabilization bonds, which together strengthened the country’s liquidity buffers. Market watchers say steady inflows and active reserve management have supported the accumulation despite global economic headwinds.

A breakdown of the reserve components reveals modest shifts:

• Foreign securities, including holdings of US Treasuries, fell by about US$460 million to US$377.96 billion, representing roughly 88.1% of total reserves.

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

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

• IMF reserve positions dipped slightly by US$80 million to US$4.41 billion.

On the global stage, South Korea remains the ninth-largest holder of foreign reserves, behind economies such as China, Japan, Switzerland, Russia and India. Analysts note that ample reserves offer protection against currency swings, underwrite international trade, and help maintain investor confidence amid uncertain markets.

The recent uptick reflects Seoul’s continued emphasis on financial stability and active reserve management, positioning the country to respond to shifting interest rates and trade conditions worldwide.