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SK Foreign Reserves

South Korean foreign exchange reserves dipped in June from a month earlier, its first decline in a year, due to currency-swaps with the country's pension fund and banks, central bank data showed on Tuesday.

The country's foreign exchange reserves - the world's fifth-largest in May - fell to US$250.7 billion at end-June from US$250.74 billion a month ago. It was the first time reserves fell since a US$332 million drop in June 2006, the Bank of Korea said in a statement.

'The foreign exchange reserves maintained a similar level (with the previous month) because of currency swaps with the National Pension Service and commercial banks despite investment gains,' the central bank said.

Bank of Korea officials were not available for comments on the size of the currency swap.

In May, South Korea's foreign exchange reserves rose most in five months, as currency dealers and analysts suspected that the country bought dollars to check the won's strength.