Bank of Korea headquarters in Seoul / Courtesy of Bank of Korea
The Bank of Korea (BOK) reported a record first-quarter profit of more than 4 trillion won ($2.71 billion), as a weaker won against the dollar boosted returns on its foreign currency assets, according to data released Tuesday.
Bank of Korea Gov. Shin Hyun-song speaks during his inauguration ceremony at the bank's headquarters in Seoul, April 21. Joint Press Corps
While part of the windfall will be transferred to government revenue, supporting public finances, the gains driven by high exchange rates underscore the challenge facing the central bank in curbing currency volatility.
According to the BOK's monthly balance sheet, cumulative net profit for the January-March period reached 4.21 trillion won.
This is more than triple the 1.39 trillion won recorded during the same period in 2025, marking the highest first-quarter figure on record. It also nearly doubled the previous high of 2.22 trillion won set in March 2020.
The BOK's earnings are largely driven by interest income and capital gains on foreign currency securities, leaving them sensitive to global financial conditions, including interest rates, equity markets and exchange-rate movements.
A prolonged period of won weakness against the dollar — with the Korean currency averaging above 1,460 per dollar in the first quarter — significantly boosted returns on overseas assets, officials said, amplifying gains from foreign securities and overseas investments.
"The continued strength of the dollar led to higher gains from foreign securities trading and increased interest income from overseas asset management," a BOK official said.
Additional support came from gains on foreign-exchange transactions carried out during market stabilization operations, as well as lower interest expenses on monetary stabilization bonds compared with a year earlier, officials said.
Source: Korea Times News
