2026.02.0603:38:47UTC+00Korean Won Rises on Currency Inflows

The South Korean won appreciated to approximately 1,470 per dollar, reversing previous declines after reaching a two-week low, thanks to indications of net foreign currency inflows. In 2025, South Korea recorded its largest-ever annual current account surplus, totaling US$123.05 billion. This figure surpassed the previous high of $105.1 billion achieved in 2015 and exceeded the central bank's projection of $115 billion. The surplus was driven by robust exports, particularly during a favorable semiconductor cycle, enhancing investor confidence. Adding to the positive sentiment, the government successfully executed a $3 billion issuance of overseas foreign exchange stabilization bonds, marking the largest single issuance since 2009. The bonds, divided into three- and five-year segments, were issued at competitive rates, reflecting strong demand and reinforcing confidence in South Korea's external financial stability. While the primary goal was to bolster foreign-exchange reserves, the bond issuance also alleviated short-term pressures on the currency.