Data released by the Bank of Korea on Friday shows that the daily average foreign exchange turnover of South Korean banks hit a record high in the second quarter, primarily driven by increased foreign investment in local stocks.

According to the Bank of Korea, from April to June, the daily average foreign exchange turnover, including derivatives trading, reached $121.44 billion, an increase of $18.79 billion or 18.3% from the previous quarter. This figure marks the highest quarterly level since the central bank began compiling such data under current statistical standards in 2008, surpassing the previous record of $102.65 billion set in the first three months of the year.

The Bank of Korea attributed the sharp rise in foreign exchange trading volume to an increase in stock transactions by offshore investors. In April and May, foreign investors traded an average of 1,048 trillion won (approximately $730.6 billion) in stocks per month, compared to 855 trillion won in the first quarter and 475 trillion won in the fourth quarter of last year.

In the second quarter, the average daily spot foreign exchange trading volume increased by 27.7% year-on-year to $54.11 billion, while derivatives trading volume rose by 11.7% to $67.32 billion.