South Korea’s Foreign Exchange Market reaches Record High in 2025
Seoul, South Korea – The South Korean foreign exchange market experienced unprecedented trading volume in 2025, surpassing all previous records. This surge is largely attributed to the extended trading hours implemented in recent years, coupled with increased overseas securities investments by Korean residents.
Factors driving the increase
Several key factors contributed to this important growth in foreign exchange trading:
- extended Trading Hours: The extension of trading hours has provided greater adaptability for investors and facilitated increased participation in the global foreign exchange market.
- Overseas Securities Investment: Korean residents have demonstrated a growing appetite for investing in foreign securities, driving demand for foreign currencies and boosting trading volume.
- Economic Growth & Global Integration: South Korea’s continued economic growth and increasing integration into the global economy have naturally led to a higher volume of international financial transactions.
Impact on the Korean Economy
The record trading volume in the foreign exchange market has several implications for the Korean economy:
- increased Liquidity: Higher trading volumes generally lead to increased liquidity in the market, making it easier for businesses and investors to execute transactions.
- Enhanced Financial Stability: A robust and active foreign exchange market can contribute to greater financial stability by providing a mechanism for managing currency fluctuations.
- Potential for Currency Volatility: While increased liquidity is beneficial, it can also lead to greater currency volatility, requiring careful monitoring by policymakers.
Looking Ahead
Experts predict that the trend of increasing foreign exchange trading volume will likely continue in the coming years, driven by ongoing economic growth and further integration into the global financial system. The Bank of Korea will continue to monitor market developments and implement appropriate policies to ensure financial stability and support enduring economic growth.
publication Date: 2026/01/24 10:54:17
