South Korea's foreign exchange authorities sold a net of nearly $10 billion in the market in the second quarter to defend the won.
According to the "market stabilization measures" data released by the Bank of Korea on the 30th, the authorities sold a net $9.612 billion in the second quarter to stabilize the foreign exchange market. Converted at the quarter's average won-dollar exchange rate of 1,502 won, that amounts to 14.437 trillion won.
It was the fifth-largest quarterly net sale on record, following $22.467 billion in the fourth quarter of 2025, $17.543 billion in the third quarter of 2022, $15.409 billion in the second quarter of 2022 and $13.628 billion in the first quarter of 2026. It also marked the seventh consecutive quarter of net selling since the fourth quarter of last year.
The Bank of Korea and the government use their foreign currency holdings to stabilize the market when the exchange rate swings sharply. When the won-dollar rate spikes in a short period, they sell dollars in the foreign exchange market to increase supply. When the rate plunges, they do the opposite, selling won and buying dollars.
In the second quarter, the rate surged as uncertainty grew over the war in the Middle East and foreign investors sold shares to lock in profits from a rising KOSPI, prompting large-scale intervention through dollar sales, analysts said.
Dollar sales are expected to have shrunk in the third quarter, however, as the exchange rate fell back to the 1,300-won range. The Bank of Korea and the Ministry of Finance and Economy have disclosed quarterly transaction volumes for market stabilization since the third quarter of 2019.
