South Korea's OTC Derivatives Trading Hits Record High in 2025
Currency forwards and swaps drive record turnover as export volumes reach historic peak
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South Korea's over-the-counter derivatives market reached a record 26,779 trillion won in 2025, fueled by increased demand for currency hedging amid a strong U.S. dollar and record-breaking export performance.
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Warum es wichtig ist
The Financial Supervisory Service tracks OTC derivatives as a measure of financial market activity and corporate risk management strategies.
Transactions of over-the-counter (OTC) derivatives rose to the highest level ever last year, helped by greater trading volume and a sharp increase in currency forwards and interest swaps, data showed Monday.
The combined turnover of OTC derivatives, including stock options, came to 26,779 trillion won (US$18.13 trillion) last year, up 318 trillion won, or 1.2 percent, from a year earlier, according to the data from the Financial Supervisory Service.
By product, currency-related products -- currency swaps and currency forwards -- amounted to 18.517 trillion won, accounting for 73.9 percent of the total.
Transactions of currency forwards jumped 6 percent on-year to 18,517 trillion won as demand for hedging foreign exchange volatility increased due to the strong U.S. dollar, according to the financial watchdog.
Those of interest rate swaps fell 6.8 percent to 5,986 trillion won, the data showed.
The country's exports reached US$709.7 billion in 2025, hitting an all-time high, with the annual trade surplus also rising to $78 billion, the largest tallied since 2017.
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Continued high demand for currency hedging if the U.S. dollar remains strong
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Offene Fragen
- What specific factors contributed to the decline in interest rate swaps?
