BOK's Net Profit Hits Record 15.3 Trillion Won Last Year... Key Points in Next Month's Annual Report [BOK Focus]

Nearly Double the Previous Record: All-Time High Net Profit Achieved Again

30% of Last Year's Net Profit, 4.5983 Trillion Won, Added to Statutory Reserves

Focus on Foreign Securities Trading Gains, Interest Income, and Asset Allocation by Product

Last year, the Bank of Korea's net profit surpassed 15 trillion won, setting a new all-time record. This figure is nearly double the previous peak of 7.8638 trillion won in 2021. It is believed that the record-high net profit was driven by increased gains and interest from foreign currency securities, as well as profit from foreign exchange transactions after selling dollars. Further details will be available in the Bank of Korea's annual report to be published at the end of next month.

An employee is organizing US dollar bills at the Hana Bank Counterfeit Response Center in Jung-gu, Seoul. Photo by Yonhap News Agency

Nearly Double the Previous Record: 'All-Time High Net Profit' Reached Again

According to the Bank of Korea's balance sheet as of the end of December 2025, last year's net profit reached 15.3275 trillion won, up 7.5086 trillion won (96.03%) from the previous year (7.8189 trillion won). The profit nearly doubled from the previous year and also far exceeded the last record high of 7.8638 trillion won in 2021.

The Bank of Korea's net profit increased every month last year, reaching a cumulative 8.5984 trillion won by the end of September, already surpassing the total net profit for the entire year of 2024. By the end of October, it had risen to 10.5326 trillion won, and by the end of November to 11.4199 trillion won. With factors such as year-end foreign exchange market interventions, it jumped by nearly 4 trillion won (3.9076 trillion won) in just one month, reaching 15.3275 trillion won at the end of December.

The Bank of Korea intervened in the market to stabilize it by selling dollars whenever the foreign exchange market was volatile, including during periods last year when the won-dollar exchange rate soared above 1,480 won. Typically, when the won-dollar exchange rate is high, the central bank supplies dollars to the market by selling them, so the larger the scale of intervention, the greater the potential gain. In 2024, the Bank of Korea's profit from foreign exchange transactions was 1.1654 trillion won.

As of the end of last year, the Bank of Korea's total assets amounted to 631.0005 trillion won, an increase of 35.4801 trillion won compared to the end of the previous year (595.5204 trillion won). Liabilities also grew by 25.6259 trillion won to 592.7808 trillion won, up from 567.1549 trillion won at the end of the previous year.

Accordingly, the Bank of Korea allocated 30% of its net profit for the year-4.5983 trillion won-to statutory reserves. As a result, the reserve balance is expected to have increased to around 27.4906 trillion won. However, this still falls short of the Bank of Korea’s target reserve level of 5% of total assets (31.5500 trillion won). The Bank of Korea believes that, to ensure trust and credibility in the financial and foreign exchange markets, a central bank must maintain a minimum level of financial capacity, which requires keeping at least 5% of total assets as reserves. The current reserve balance stands at just 4.36% of last year's total assets (631.0005 trillion won).

Key Points to Watch in the 2025 Annual Report to Be Released Next Month

The Bank of Korea's earnings reflect the outcomes of its monetary and credit policy operations, and unlike general corporations, are significantly affected by domestic and international interest rates, stock prices, and exchange rates. With this in mind, the 2025 annual report to be published at the end of next month will focus on gains from securities transactions and the scale of interest income. Most of the Bank of Korea’s earnings are generated from the management of foreign currency assets. In 2024, total revenue increased due to gains from foreign stock transactions and interest from foreign bonds, which in turn boosted net profit. At that time, securities trading gains and interest income were 8.3172 trillion won and 11.5933 trillion won, respectively. Last year, as profit from foreign securities increased, net profit is also believed to have risen; thus, the scale and growth of securities trading gains and interest income will be important to monitor.

The impact of increased volatility in the foreign exchange market also warrants attention. Because both trading gains and interest income from foreign asset management are denominated in dollars, exchange rate valuation gains resulting from converting dollars to won likely contributed to the boost in net profit. The increased market volatility is also expected to have expanded foreign exchange transaction profits. According to the Bank of Korea’s Economic Statistics System (ECOS), the average annual won-dollar exchange rate last year was 1,421.97 won, the highest on record.

Changes in the allocation of foreign currency assets by product are also a key point to watch. In 2024, the allocation ratios were as follows: government bonds 47.3%, government agency bonds 10.1%, corporate bonds 10.4%, asset-backed securities 11.6%, and stocks 10.2%. Shifts in the proportions of direct investment assets versus entrusted assets among investment assets are also noteworthy. In the second half of last year, the Bank of Korea began directly managing stocks for the first time. In 2024, the ratio of direct investment assets was 67.2%, while entrusted assets, managed by domestic and international asset managers and Korea Investment Corporation (KIC), accounted for 24.9%.

Pre-tax profit and corporate tax amounts are also of interest. Previously, the year in which the Bank of Korea paid the most corporate tax was 2021, with 2.8776 trillion won.

This content was produced with the assistance of AI translation services.