Seoul: South Korea's foreign reserves fell from a month earlier to reach the lowest level in nearly five years amid the weak local currency, central bank data showed Wednesday. The country's foreign reserves had come to US$411.01 billion as of end-January, down $4.59 billion from a month earlier.

According to Yonhap News Agency, this marked the lowest level since June 2020, when the figure came to $410.7 billion, and January's reading marked the sharpest decline since April 2024. The decrease was attributed to financial authorities' responses to the volatility in the foreign exchange market.

The local currency dropped to its lowest level in nearly 16 years, falling below 1,460 won against the U.S. dollar in December. It remained at that level through January amid domestic political chaos caused by President Yoon Suk Yeol's martial law imposition and the continued strength of the greenback.

Foreign securities, such as U.S. Treasuries, were valued at $362.02 billion as of end-January, down $4.65 billion from a month earlier, accounting for 88.1 percent of foreign reserves. The value of deposits, however, rose $70 million to $25.29 billion as of the end of last month.

Foreign reserves consist of securities and deposits denominated in overseas currencies, International Monetary Fund reserve positions, special drawing rights, and gold bullion. South Korea ranked as the world's ninth-largest holder of foreign reserves at end-January. China topped the list, followed by Japan, then Switzerland, India, and Russia, the data showed.