South Korea Foreign Reserves December 2025 Fall for First Time in 7 Months

South Korea's financial fortress took its first hit in seven months as authorities utilized reserves to steady a rocking won. The Bank of Korea (BOK) announced on Tuesday that the country's foreign reserves dropped by $2.6 billion in December 2025, ending the year at $428.05 billion. It's the first monthly decline since June, halting a six-month streak of growth that had pushed reserves to their highest levels in years.

South Korea Foreign Reserves December 2025: The Cost of Won Stability

The dip stems largely from aggressive market stabilization measures. During the final months of 2025, the won faced intense pressure, sliding below the 1,450 won mark against the U.S. dollar. In December, it neared a 16-year low of approximately 1,480 won. To prevent a full-scale currency rout, authorities stepped in with both verbal warnings and direct market intervention, which pulled down the total reserve tally.

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Treasuries Sold as Deposits Rise

The composition of the reserves shifted significantly over the month. Foreign securities, including U.S. Treasuries, plummeted by $8.22 billion to reach $371.12 billion. Conversely, foreign currency deposits surged by $5.44 billion to $31.87 billion. Despite the overall drop, South Korea remains the world's ninth-largest holder of foreign reserves, trailing behind major economies like China and Japan.