SEOUL, SOUTH KOREA / RankWire.AI / – South Korea’s foreign exchange reserves rose by a record monthly amount in August, reaching $442.28 billion at month-end. The Bank of Korea reported an increase of $14.33 billion from $427.95 billion at the end of July. The gain was the largest since official reserve records began in 1971. It also lifted the country’s holdings to their highest level since May 2022, marking a sharp acceleration from the smaller increases recorded during the previous two months.
South Korea’s reserves increased for a third straight month after rising by $370 million in June and $590 million in July. August’s advance also exceeded the previous monthly record of $14.29 billion, which was set in May 2009. Even after the latest increase, the total remained below the all-time high of $469.21 billion reached in October 2021. The figures track assets available within the country’s official foreign exchange reserve holdings and are reported in U.S. dollars.
The Bank of Korea attributed the August increase to higher foreign currency deposits, returns on reserve asset management and exchange rate movements. Changes in currency values can affect the dollar value of assets held in euros, pounds and other currencies. The central bank converts those holdings into U.S. dollars when reporting total reserves. As a result, movements in major exchange rates can raise or lower the reported reserve balance even when the underlying foreign currency assets remain part of the same portfolio.
Securities and deposits drive August increase
Foreign securities remained the largest component of South Korea’s foreign exchange reserves. Their value rose by $7.07 billion in August to $387.07 billion, equal to 87.5% of total reserves. The category includes government and corporate securities held among official reserve assets. Foreign currency deposits also increased sharply during the month. They climbed by $7.17 billion to $30.30 billion, accounting for a large share of the overall rise alongside the increase recorded in foreign securities.
Other reserve components showed smaller changes. Special drawing rights increased by $60 million to $15.77 billion, while the country’s reserve position stood at about $4.34 billion. Gold holdings remained unchanged at $4.79 billion. Together, securities and foreign currency deposits accounted for almost all of the $14.33 billion monthly increase. The reserve structure therefore remained heavily concentrated in securities, even as deposits posted one of the largest increases among the individual components during August.
Reserve total reaches highest level since May 2022
The August balance was South Korea’s highest in four years and three months. Reserves last stood above the latest level in May 2022, when they reached $447.71 billion. The August figure also narrowed the gap with the record level reported in October 2021. Official foreign exchange reserves include securities, deposits, gold, special drawing rights and the country’s reserve position in the international monetary system. Authorities publish the figures each month as part of regular reporting on the nation’s external financial assets.
The latest data show a marked change in the pace of reserve growth during the summer. June and July produced modest increases before August delivered a record monthly gain. South Korea ended August with $442.28 billion in foreign exchange reserves, nearly $14.3 billion more than one month earlier. The total remained below the historical peak but stood at its highest level since May 2022, supported by increases in securities, foreign currency deposits and the dollar value of selected reserve assets.