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OTC derivative transactions climb to record high in 2024, FSS data shows

Published: 10 Jun. 2025, 09:04

A screen in Hana Bank's trading room in central Seoul shows the Kospi opening on June 5. [YONHAP]

Transactions of over-the-counter (OTC) derivatives rose to the highest level last year, helped by a sharp increase in currency forwards and interest swaps, data showed Tuesday.

The combined turnover of OTC derivatives, including stock options and interest rate swaps, came to 26,461 trillion won ($19.41 trillion) last year, up 1,758 trillion won, or 7.1 percent, from a year earlier, according to the data from the Financial Supervisory Service.

By product, currency-related products — currency swaps and currency forwards — amounted to 18,379 trillion won, accounting for 74.4 percent of the total.

Transactions of currency forwards jumped 6 percent on year to 18,165 trillion won as demand for hedging foreign exchange volatility increased due to the strong U.S. dollar, according to the financial watchdog.

Transactions of currency swaps slipped 7 percent on year to 1,114 trillion won last year, while those of interest rate swaps rose 9.4 percent to 6,424 trillion won, the data showed.

Yonhap