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South Korea's Daily Forex Trading Hits Record $80.7 Billion in 2025

Daily foreign exchange trading by banks in South Korea reached an all-time high in 2025, averaging $80.71 billion. The 17% increase was propelled by a sharp rise in cross-border stock trading by both residents and foreign investors. Concurrently, a central bank survey reveals financial experts view heightened FX market volatility as the biggest risk to the country's financial system. The South Korean won has remained weak, trading near multiyear lows against the US dollar.

Key Points: South Korea Forex Turnover Hits Record High in 2025

  • Record daily FX turnover of $80.71B
  • 17% annual increase driven by stock trading
  • Foreign investment in Korean stocks jumped 129%
  • 26.7% of experts cite FX volatility as top risk
  • Household debt seen as second-largest financial risk
2 min read

Daily forex turnover hits record high in 2025: BOK

Daily FX trading in South Korea surged 17% to a record $80.71 billion in 2025, driven by a sharp rise in cross-border stock investments.

"Amid extended foreign exchange market trading hours, stock investment-related trading by residents and foreign investors increased sharply, - BOK official"

Seoul, Jan 23

Daily foreign exchange trading by banks in South Korea hit an all-time high last year, driven by increased cross-border stock trading, central bank data showed on Friday.

Average daily FX turnover, including derivatives trading, came to US$80.71 billion in 2025, up 17 per cent from the previous year's $68.96 billion, according to the data from the Bank of Korea (BOK), reports Yonhap news agency.

It marked the highest annual level since the central bank began compiling such data under the current statistical standards in 2008.

"Amid extended foreign exchange market trading hours, stock investment-related trading by residents and foreign investors increased sharply," a BOK official said.

Average daily spot FX turnover climbed 26.1 per cent on-year to $32.38 billion last year, while derivatives trading increased 11.6 per cent to $48.33 billion over the cited period.

Residents' overseas stock investment amounted to $129.4 billion in the first 11 months of last year, already higher than the previous year's $72.2 billion, the data showed.

Foreign investors' investment in South Korean stocks also jumped 129 per cent on-year to $50.4 billion in 2025, according to the data from the BOK.

Meanwhile, more than one in four financial experts believe increased volatility in the foreign exchange (FX) market poses the biggest risk to the country's financial system, a central bank survey showed on Friday.

According to the survey conducted by the Bank of Korea (BOK) on 75 financial experts at home and abroad between November and December, 26.7 percent said heightened volatility in the local FX market is the biggest risk, among others, to the financial system in Asia's fourth-largest economy.

Some 16 per cent said high household debt poses the second-largest risk to the financial system.

The South Korean won has long traded below the multiyear low of 1,450 won to the greenback, in the face of capital outflows caused by increased overseas stock investment and geopolitical risks stemming from the Middle East and Europe.

The respondents cited uncertainties in economic and monetary policies among major economies, and an adjustment in the global asset market as major external factors that may hurt the financial system.

Some 12 per cent said there is a high possibility of a short-term shock occurring within a year undermining the financial system, the survey showed.

- IANS

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Reader Comments

P
Priya S
While it's great to see high trading volumes, the experts' concern about FX volatility as the biggest risk is very valid. We've seen how currency swings can impact everything from inflation to corporate debt in emerging economies. Hope our RBI is taking notes for managing the rupee.
R
Rohit P
$80 billion daily turnover! That's huge. Makes me wonder what India's comparable numbers are. The part about residents' overseas stock investment doubling is interesting – more and more Indians are also looking at global markets for diversification. The world is truly one market now.
S
Sarah B
The article mentions geopolitical risks from the Middle East and Europe affecting the won. This is a crucial point often overlooked. Events far away can hit currency stability, which affects trade and investment flows. Stability is key for long-term growth.
K
Karthik V
Record highs are good, but the underlying warning is clear. High household debt is cited as the second-biggest risk. This is a lesson for us in India as well, where personal and retail loans are growing rapidly. Growth should not come at the cost of financial stability. Wise analysis by BOK.
M
Meera T
As someone who follows Asian economies, South Korea's data is a leading indicator. The sharp increase is driven by extended trading hours and cross-border flows. India's GIFT City is aiming for something similar with 24x7 trading. Hope we can also attract such robust activity while managing risks.

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