Seoul: South Korea's foreign reserves fell for the first time in seven months in December, the central bank said Tuesday, amid increased volatility in the foreign exchange market that prompted authorities to take a series of market stabilization measures. The country's foreign reserves had come to US$428.05 billion as of end-December, down $2.6 billion from a month earlier, according to the data from the Bank of Korea (BOK).

According to Qatar News Agency, this marked the first on-month decline since June, after reserves had risen for six consecutive months to reach their highest level since August 2022 at the end of November. "Measures aimed at curbing volatility in the foreign exchange market acted as a factor pulling foreign reserves down," a BOK official said, without elaborating.

The local currency fell below the psychologically important 1,450 won level against the US dollar in November for the first time since April and neared the weakest level in about 16 years of about 1,480 won last month before the authorities made strong verbal interventions and appeared to have taken steps to support the currency. On Dec. 30, the final trading day of 2025, the won was quoted at 1,439.0 per dollar, down 9.2 won from the previous session.

Foreign securities, such as US Treasuries, decreased $8.22 billion from a month before to $371.12 billion at end-December, accounting for 86.7 percent of total foreign reserves. The value of foreign currency deposits, however, rose by $5.44 billion to $31.87 billion, while special drawing rights (SDRs) increased by $150 million to $15.89 billion, whereas Gold bullion holdings remained unchanged at $4.79 billion.

The country's International Monetary Fund (IMF) reserve positions grew $20 million from a month earlier to $4.37 billion at end-December, the data showed.