South Korea's foreign exchange reserves fell to the lowest level in five years at the end of April.

South Korea's foreign exchange reserves in April dropped to their lowest level in five years, as authorities took measures to stabilize the market in response to global trade fluctuations. Data released by the Bank of Korea on Thursday showed that as of the end of April, South Korea's foreign exchange reserves were $404.67 billion, a decrease of $4.99 billion, reaching the lowest level since April 2020 and the largest monthly decline since April 2024. The Bank of Korea stated that foreign exchange forward transactions with the Korean pension fund were one of the factors contributing to the decrease in foreign exchange reserves. This transaction aimed to temporarily reduce the demand for dollars in the foreign exchange market. In early April, the Korean won fell to its weakest level in 16 years due to the impact of US President Trump's comprehensive tariff policy. However, the won/dollar exchange rate reversed course and increased by 3.3% in the same month, marking the largest monthly increase since November 2023.