South Korea Sold Net $9.6 Billion in Second Quarter to Stabilize Currency Market

South Korean foreign exchange authorities sold a net $9.6 billion in the second quarter of 2026 as they sought to stabilize the currency market, according to data released Wednesday by the Bank of Korea.

The latest intervention extended a sustained period of net dollar selling that began in the fourth quarter of 2024. Authorities have now been net sellers of dollars for seven consecutive quarters, with cumulative sales reaching $54.9 billion over that span.

The second-quarter amount was smaller than the $13.6 billion sold during the first three months of this year. Even so, the continued use of dollar sales underscored official concern about exchange-rate volatility and persistent pressure on the won.

The Korean currency averaged 1,502.1 won per dollar during the April-to-June quarter, compared with an average of 1,466.7 won per dollar in the first quarter. A higher won-per-dollar figure indicates a weaker Korean currency.

A Bank of Korea official said the stabilization measure was intended to prevent increasing volatility in the foreign exchange market and discourage one-sided market movements. By supplying dollars to the market, authorities can respond when demand for the U.S. currency rises sharply and the won comes under downward pressure.

The figures provide a quarterly view of how actively South Korean authorities have intervened in the foreign exchange market. The seven-quarter run is notable both for its duration and for the scale of the cumulative dollar sales.

Currency stability is closely watched in South Korea because sharp exchange-rate movements can affect import costs and financial conditions. The won’s average level in the second quarter shows that it remained under pressure despite the authorities’ efforts to smooth market fluctuations.

The Bank of Korea’s disclosure does not suggest that officials are targeting a fixed exchange rate. Rather, the central bank official’s explanation framed the transactions as a response to excessive volatility and movements that become heavily concentrated in one direction.

With $9.6 billion sold in the second quarter, the authorities maintained their stabilizing presence while reducing the volume from the previous quarter. The data also put the scale of recent intervention into a longer perspective: net dollar sales since late 2024 now exceed five times the amount recorded for the latest quarter alone.