South Korea’s foreign exchange reserves fell for the third consecutive month in June. According to data from the Bank of Korea (BOK), there are two main reasons for the decline: the Bank of Korea provided US dollars to the National Pension Fund under a currency swap agreement, and the central bank paid the redemption fees for maturing foreign exchange stabilization bonds.
Read more: South Korea and Asian Development Bank sign $2 billion agreement to support development projects
As of the end of June, South Korea’s foreign exchange reserves were down US$620 million from the previous month to US$412.21 billion. According to the data, US Treasury bonds and other foreign securities stood at US$363.98 billion as of the end of June, down US$6.44 billion from the previous month, accounting for 88.3% of total foreign exchange reserves. Meanwhile, deposits increased by US$5.94 billion over the same period, reaching US$24.43 billion as of the end of June.
According to the Bank of Korea, South Korea still held the ninth-largest foreign exchange reserves in the world as of the end of May.
Industrial production fell in May
Recent data showed South Korea’s industrial production fell 0.7% in May from the previous month.
According to the compiled data Statistics KoreaThe decline was driven by losses in the auto division offset by gains in the semiconductor division. Retail sales and capital spending also fell during the same period.
Industrial production, which measures output from the mining, manufacturing, gas and power industries, fell 1.2% in May as losses in the auto and machinery sectors offset a 1.8% increase in the semiconductor industry.
South Korea’s Ministry of Industry and Trade has announced plans to promote investment projects worth 2 trillion won (about $1.44 billion) over the next decade, which will leverage smart and clean energy technologies in the shipbuilding industry, Yonhap News Agency reported.
Smart, Clean Energy Investments in Shipbuilding
Earlier this week, South Korea’s Ministry of Industry and Trade announced plans to promote investment projects worth 2 trillion won (about $1.44 billion) over the next decade that will leverage smart and clean energy technologies in the shipbuilding industry.
The Ministry of Trade, Industry and Energy announced the initiative as part of its strategic plan, Vision 2040, to develop advanced technologies for ships, including features such as fully autonomous sailing capabilities and carbon-neutral propulsion systems. The government also aims to transform South Korea into a global leader in marine engineering by leveraging automated production processes and moving away from the traditional labor-intensive industrial structure.
For more economic news, here.