The Bank of Korea’s net profit derived from foreign currency asset management totaled 11.8 trillion won last year, up 34.1 percent from a year ago and an all-time high since 2012. The amount was 12.4 trillion won in 2012.
At present, the central bank’s foreign currency assets are classified into cashable assets and investment assets. The latter are divided into direct investment assets and entrusted investment assets.
As of the end of 2019, the cashable, direct investment and entrust investment assets accounted for 4.6 percent, 74.6 percent and 20.8 percent of the foreign currency assets. As compared with the previous year, the ratio of the cashable assets fell from 5.3 percent to 4.6 percent while that of the investment assets rose from 94.7 percent to 95.4 percent. In addition, the ratio of the direct investment assets fell to 74.6 percent and that of the investment assets entrusted to Korea Investment Corporation, asset management firms, and the like rose to 20.8 percent.
The ratio of government bonds increased from 42.9 percent to 44.6 percent whereas those of government agency bonds, corporate bonds, and asset-backed bonds were adjusted from 18 percent to 15.8 percent, from 13.7 percent to 13.4 percent, and from 12.8 percent to 12.5 percent, respectively. The ratio of stocks to the foreign currency assets was raised from 7.6 percent to 8.7 percent.