The Bank of Korea's net profit for last year exceeded 7.8 trillion won, marking the second highest performance in history. This was due to an upturn in the U.S. stock market and an increase in the won-dollar exchange rate, which led to a rise in trading profits from foreign exchange and securities. The corporation tax paid by the Bank of Korea also surpassed 2.5 trillion won, ranking third highest ever.
According to the annual report announced by the Bank of Korea on the 28th, it recorded a net profit of 7.8189 trillion won last year. Historically, it ranks second after 2021 (7.8638 trillion won). In 2023, the surplus was limited to 1.3622 trillion won, the worst performance since 2007 (-444.7 billion won), but it increased sixfold in one year.
Interest from government securities led the surplus, increasing by 2.6121 trillion won to 11.5933 trillion won. Trading profits from foreign exchange and government securities also recorded 1.1654 trillion won and 54.6 billion won, respectively. A year earlier, the figures were 965.5 billion won in surplus and a deficit of 4.3374 trillion won.
The assets of the Bank of Korea are primarily composed of foreign assets such as U.S. dollars and U.S. Treasury bonds, making them influenced by fluctuations in U.S. stock prices and exchange rates. Last year, the U.S. stock market experienced a boom, and as the exchange rate soared to the 1,470 won range, the prices of foreign stocks, currencies, and bonds held by the Bank of Korea rose.
The corporation tax paid by the Bank of Korea last year was 2.5782 trillion won. Compared to a year earlier (501.8 billion won), it increased by over 2 trillion won. In historical terms, it ranks third after 2021 (2.8776 trillion won) and 2020 (2.8231 trillion won). Compared to the corporation tax paid by large companies in 2023 (attributed to 2022), it is on par with Samsung Electronics (4.2731 trillion won) and SK hynix (1.6766 trillion won).
The Bank of Korea allocated 30% of its net profit, amounting to 2.3457 trillion won, to the legal reserves, and 241 billion won to discretionary reserves for the purpose of grants to the Saving Encouragement Fund for Property of Agricultural & Fishing Houses. The remaining 5.4491 trillion won was paid as government revenue. As net profit increased, the revenue remitted to the government also surged to 5.9 times that of a year earlier (922.1 billion won).
At the end of last year, the total assets held by the Bank of Korea amounted to 595.5204 trillion won, an increase of 59.1185 trillion won compared to the end of 2023 (536.4019 trillion won). The sharp rise in the won-dollar exchange rate significantly contributed to the increase in the valuation of the foreign assets held by the Bank of Korea. The increase in the exchange rate also led to a rise in the liability valuation, which was recorded at 567.1549 trillion won, an increase of 52.2531 trillion won from the previous year.
Among the foreign assets held by the Bank of Korea (excluding the International Monetary Fund position, gold, and special drawing rights), 8.0% were liquid assets, 67.2% were direct investment assets, and 24.9% were entrusted assets with domestic and international asset management firms and the Korea Investment Corporation (KIC). When categorized by currency, the U.S. dollar accounted for 71.9%, while other currencies comprised 28.1%. The dollar's share increased by 1.0 percentage point from 2023 (70.9%).
The distribution by product was 47.3% in government bonds, 10.1% in government agency bonds, 10.4% in repurchase agreements, 11.6% in asset-backed securities, and 10.2% in stocks. At the end of 2023, it was recorded at 44.8% in government bonds, 13.3% in government agency bonds, 10.8% in corporate bonds, 11.7% in asset-backed securities, and 10.9% in stocks. Over one year, government bonds increased by 2.5 percentage points, while government agency bonds, corporate bonds, and stocks decreased by 3.2 percentage points, 0.4 percentage points, and 0.7 percentage points, respectively.
A Bank of Korea official noted, "Last year, due to the boom in the U.S. stock market compared to 2023, stock prices rose, and the volatility of the won-dollar exchange rate also expanded, leading to an increase in net profit." They added, "In contrast, interest rates slightly declined, reducing losses on bonds purchased during previous low-interest-rate periods."