South Korea's foreign exchange reserves increased by $4.22 billion to reach $427.88 billion at the end of April 2026 [1], [2].
The growth indicates the central bank's ability to maintain a financial cushion despite active efforts to stabilize the local currency market. This balance is critical for a trade-dependent economy facing volatile global currency shifts.
According to the Bank of Korea, the rise was driven by a higher U.S. dollar value of foreign-currency-denominated assets and increased investment returns [1]. These gains occurred even as the central bank implemented market stabilization measures, which included foreign exchange swaps with the National Pension Service [1].
Securities within the reserves played a significant role in the monthly increase. The value of these securities rose by $6.4 billion from the previous month [4]. This brought the total value of securities to $384.1 billion [3], which represents approximately 90 percent of the total reserves [5].
"Despite market stabilization measures such as foreign exchange swaps with the National Pension Service, foreign exchange reserves increased in April due to a rise in the U.S. dollar value of foreign currency‑denominated assets, as well as higher investment returns," the Bank of Korea said [1].
The central bank said that the Republic of Korea's reserves rose to US$427.88 billion at the end of April, an increase of $4.22 billion compared to the previous month [2].
“South Korea's foreign exchange reserves increased by $4.22 billion to reach $427.88 billion”
The increase in reserves suggests that organic growth from asset valuation and investment returns is currently offsetting the costs of the Bank of Korea's currency stabilization efforts. By maintaining a high volume of U.S. dollar-denominated assets, specifically securities which make up the vast majority of the reserve, South Korea is hedging against external shocks while attempting to manage the volatility of the won.
