Korea's foreign reserves rise for 1st time in 3 months in June

emirates7 - South Korea's foreign reserves bounced back in June after hitting a five-year low, according to data released Thursday by the Bank of Korea (BOK).

As of the end of June, the country's foreign reserves stood at US$410.2 billion, marking an increase of $5.61 billion from the previous month. This is the highest level since January, when reserves totaled $411.01 billion.

The reserves had been declining for two straight months, falling to their lowest point since April 2020, when they were recorded at $403.98 billion, Yonhap News Agency reported.

The BOK attributed June's rebound to two main factors: an increase in the dollar-converted value of non-dollar foreign assets due to the weakening US dollar, and stronger investment returns.

Foreign securities, including US Treasuries, made up the bulk of the reserves, reaching $358.5 billion by the end of June—an increase of $1.47 billion from May—and accounting for 87.4 percent of the total.

Deposits also saw a notable rise, climbing 6.5 percent month-on-month to $26.54 billion during the same period.

As of the end of May, South Korea ranked as the 10th-largest holder of foreign reserves globally. China held the top spot, followed by Japan, Switzerland, India, and Russia, the BOK noted.