In the first quarter of this year (January to March), as foreign investment poured into Korea, the daily volume of foreign exchange trading in the country surpassed $100 billion for the first time.

According to the Bank of Korea on the 29th, its report on foreign exchange transactions at foreign exchange banks for the first quarter of 2026 showed that the average daily foreign exchange trading volume in the first quarter was $102.65 billion, up 21.3% from the fourth quarter of last year ($84.62 billion). Since a statistical revision in 2008, the fourth quarter of last year had been the highest on a quarterly basis, but this time a new record was set again. It was also the first time that daily foreign exchange transactions exceeded $100 billion.

The Bank of Korea cited increased foreign investment in domestic securities, seasonal factors, greater volatility due to the war in the Middle East, and strong export performance by domestic companies as reasons behind the sharp rise in foreign exchange trading.

In the first quarter, the domestic stock market started with the KOSPI index in the low 4,000s, then soared to 6,300, before sliding back to the 5,000s amid the Middle East war, riding a roller coaster. In the process, foreign investors increased their buying and selling of domestic stocks. In the process, foreign investors increased their buying and selling of domestic stocks. In the first quarter, trading in domestic securities by foreign investors (listed stocks plus bonds) averaged 855 trillion won per month, nearly doubling from 475 trillion won in the fourth quarter of last year.

After dropping to 1,439 won per dollar at the end of last year, the won-dollar exchange rate jumped to as high as 1,530 won in March amid the Middle East war, leading to more trading to hedge exchange-rate risk.

The Bank of Korea explained that exports by domestic companies were strong in the first quarter and that seasonal factors, with trading shrinking at year-end and then increasing at the beginning of the year, also played a role.

In the first quarter, average daily spot foreign exchange trading came to $42.39 billion, an increase of 26.2% ($8.8 billion) from the previous quarter. Of that, won-dollar trading totaled $33.28 billion, up 28.3% ($7.33 billion) from the previous quarter.