South Korea’s Foreign Reserves Hit 33-Month High in Oct

Seoul, November 5 – South Korea’s foreign reserves climbed to their highest 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 consecutive month of growth, highlighting the country’s strong position in global financial markets.

The surge of US$6.8 billion from September reflects a combination of rising investment returns and newly issued foreign currency-denominated FX stabilization bonds, which strengthened the nation’s external liquidity. Analysts note that steady inflows and careful management have helped maintain the reserves at robust levels despite ongoing global economic uncertainties.

A closer look at the composition of the reserves shows some notable movements:

• Foreign securities, including US Treasuries, dipped slightly by US$460 million, now valued at US$377.96 billion, making up 88.1% of total reserves.

• Foreign currency deposits climbed by US$7.4 billion to US$25.94 billion.

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

• Meanwhile, South Korea’s IMF reserve positions decreased marginally by US$80 million, now at US$4.41 billion.

In global rankings, South Korea continues to hold its spot as the ninth-largest reserve holder in the world, trailing behind China, Japan, Switzerland, Russia, and India. Experts say that strong reserves provide the country with a buffer against currency volatility, support for international trade, and confidence for investors navigating uncertain markets.

This recent increase reflects South Korea’s ongoing focus on financial stability, even as global interest rates and trade dynamics fluctuate, positioning the country to respond effectively to both domestic and international economic challenges.