Bank of Korea Reports Surge in Trading and Export Prices

The Bank of Korea reported a significant increase in domestic financial activity and export pricing during the second quarter of 2026. Daily average transactions for foreign currencies and derivatives in the inter-bank market rose by 7.92 billion USD over the previous quarter, reaching 53.40 billion USD. This growth was primarily driven by strong demand for U.S. and Chinese currencies, with FX swap demand increasing to 24.12 billion USD.

Currency volatility rose as the South Korean won depreciated to 1,549.4 won per dollar by the end of June, up from 1,507.9 won in May. Despite this volatility, the credit risk for five-year government bonds declined, with the credit default swap premium averaging 23 basis points in June compared to 25 basis points in May.

Trade data for June showed that South Korean export prices surged 48.9 percent on an annual basis. While monthly export prices remained flat, the Export Value Index rose 74.8 percent and the Export Volume Index grew 29.8 percent year-over-year. Import prices showed mixed results, decreasing 4.4 percent monthly but increasing 20.6 percent annually. The Net Barter Terms of Trade Index rose 15.6 percent over the previous year.