The average daily foreign exchange transaction amount at foreign exchange banks topped $80 billion last year, marking an all-time high. The extension of foreign exchange market trading hours, along with a sharp increase in overseas securities investment and foreigners' investment in domestic securities transactions, drove the rise.
According to the "Trends in Foreign Exchange Transactions at Foreign Exchange Banks in 2025" released by the Bank of Korea on the 23rd, the average daily amount of foreign exchange transactions, including spot and foreign exchange derivatives, at foreign exchange banks last year was $80.71 billion, up 17% (+$11.74 billion) from the previous year ($68.96 billion). Both the transaction amount and the increase were record highs on a daily average basis since the 2008 statistical revision.
The Bank of Korea (BOK) said, "As the impact of the extension of foreign exchange market trading hours in July 2024 continues, the sharp increase in transactions related to residents' overseas securities investment and foreigners' investment in domestic securities is the main driver."
From January to November last year, overseas securities investment by domestic investors reached $129.4 billion, 1.8 times higher than in 2024 ($72.2 billion). During the same period, foreigners' investment in domestic securities rose from $22.0 billion to $50.4 billion, expanding to 2.3 times.
By product, the spot foreign exchange transaction amount averaged $32.38 billion per day, up $6.7 billion (+26.1%) from the previous year, while foreign exchange derivatives transactions totaled $48.33 billion, up $5.04 billion (+11.6%) from the previous year.
By bank, domestic banks' transaction volume was $37.54 billion, up $6.58 billion (+21.2%) from the previous year. Foreign bank branches' transaction volume was $43.17 billion, up $5.17 billion (+13.6%) over the same period.