Seoul: South Korea's foreign reserves fell for the second consecutive month in May to reach the lowest level in five years due mainly to a decrease in foreign currency deposits by financial institutions, central bank data showed Thursday. The country's foreign reserves stood at US$404.6 billion as of end-May, down $70 million from a month earlier, according to the data from the Bank of Korea (BOK).

According to Yonhap News Agency, the reading marks the lowest level since April 2020, when the foreign reserves stood at $403.98 billion. It also marks the second straight monthly fall following a near $5 billion decline in April that sent the foreign reserves to a five-year low. Foreign securities, such as U.S. Treasuries, were valued at $606 billion as of end-May, up $3.5 billion from a month earlier. They accounted for 89 percent of foreign reserves.

The value of deposits fell by $3.5 billion to $19.7 billion over the cited period. Special drawing rights (SDRs) and gold bullion remained unchanged at $15.7 billion and $4.8 billion, respectively, while the country's International Monetary Fund (IMF) reserve positions stood at $4.5 billion as of end-May, the data showed.

South Korea ranked as the world's 10th-largest holder of foreign reserves at end-April. China topped the list, followed by Japan, Switzerland, India, and Russia, according to the BOK.