SEOUL: The Bank of Korea said on Friday that its 2025 net income climbed to a record 15.3275 trillion won, nearly doubling from the previous year as gains on foreign-currency assets and stronger securities prices lifted results. The total marked a 96.03% increase from 2024 and surpassed the central bank’s previous high of 7.8638 trillion won set in 2021. The bank said the sharp rise reflected larger returns from foreign-currency assets as the won weakened against the dollar and market prices for securities improved through the year.
Total revenue for 2025 rose to 33.5194 trillion won, up from 26.5179 trillion won a year earlier, while total expenses fell to 12.7544 trillion won from 16.1208 trillion won. Corporate tax nearly doubled to 5.4375 trillion won. The combination of higher income and lower costs widened the bank’s annual surplus and pushed its bottom line to the highest level since the current reporting format was adopted. The figures were released in the central bank’s annual report, which outlined its financial performance and policy operations for the year.
Under the Bank of Korea Act, 30% of net income, or 4.5982 trillion won, was set aside as statutory reserves. Additional voluntary reserves were allocated for designated funds, and the remaining 10.705 trillion won was due to be transferred to government revenue. The central bank’s total assets stood at about 631 trillion won at the end of December, up roughly 35.48 trillion won from a year earlier, reflecting increases in deposits and repurchase agreements as well as changes in the composition and valuation of financial holdings.
Foreign-currency gains lift results
The annual report showed foreign-exchange trading gains of 6.3194 trillion won in 2025, compared with 1.1654 trillion won the year before, as the central bank sold dollars into the market during periods of won weakness and booked larger returns when those transactions were translated into local currency. Securities-related income also strengthened as bond and equity prices improved. The bank said the combined effect of exchange-rate moves, higher securities prices and increased gains on foreign-currency assets was the main force behind the jump in annual earnings.
The balance sheet also expanded over the year. Total liabilities rose by about 25.63 trillion won, mainly because of growth in currency issuance and deposit balances, while reserves increased after the appropriation of profit. The bank said its foreign-currency assets were held across directly managed portfolios, externally managed assets and cash or cash equivalents, maintaining liquidity while supporting market operations. The report underscored how central bank earnings can swing sharply from year to year depending on market prices, exchange rates and the timing of policy-related transactions.
Policy backdrop and economic context
The strong earnings came during a year in which South Korea’s economy expanded by 1.0%, according to the central bank’s advance estimate for 2025, while fourth-quarter output contracted from the previous quarter. Against that backdrop, the Bank of Korea cut its base rate twice in 2025, lowering it to 2.75% in February and to 2.50% in May. It then left the rate unchanged through the second half of the year, citing the need to balance slower growth, stable inflation, household debt trends, housing market conditions and exchange-rate volatility.
By early 2026, the base rate was still at 2.50% after the central bank left it unchanged at its February policy meeting. The annual report said 2025 was marked by unusual volatility in domestic and external conditions, requiring market-stabilization measures while inflation eased and growth softened. The bank’s record earnings therefore emerged not from a change in its mandate, but from the financial effects of exchange-rate movements, securities valuations and routine central bank operations during a turbulent year. – By Content Syndication Services.