South Korea foreign‑exchange dynamics

In late July 2026 the U.S. Treasury Department’s semiannual foreign‑exchange report kept South Korea on its monitoring list, citing a large bilateral trade surplus and a 6.6 %‑of‑GDP current‑account surplus driven by semiconductor and technology exports. Despite these fundamentals, the Treasury noted continued depreciation pressure on the won and that Korea did not meet the criterion for persistent one‑sided FX intervention.

A few days later, the Bank of Korea reported record‑high corporate dollar deposits, reaching $85.58 billion. The rise was linked to strong export earnings in semiconductors, shipbuilding and logistics, as well as inflows from overseas equity investors. Corporations retained earnings abroad while individuals reduced their dollar holdings amid a volatile won‑to‑dollar exchange rate, underscoring the importance of foreign‑exchange reserves for South Korean firms.