On October 20, 2025, South Korea’s financial and labor landscapes witnessed pivotal developments, each with far-reaching implications for the nation’s economy and workforce. The foreign exchange (FX) swap market saw notable shifts in swap point rates, reflecting both global and domestic pressures. Meanwhile, authorities and labor leaders intensified efforts to combat illegal activities within financial circles and to improve working conditions for some of the country’s most vulnerable employees—apartment security guards and janitors.
In the foreign currency sector, the FX swap point market displayed mixed movements across different maturities. According to Yonhap Infomax, the one-year FX swap rate dropped by 0.30 won compared to the previous day, closing at -20.10 won on October 20, 2025. The six-month rate also declined, falling by 0.10 won to -11.50 won, while the three-month rate dipped by 0.05 won to -6.30 won. The one-month rate followed suit, decreasing by 0.10 won and settling at -2.35 won. Interestingly, the overnight rate ticked up by 0.05 won, but the tomorrow-and-next (T/N) rate slipped by 0.08 won, ending at -0.08 won.
What’s driving these numbers? A foreign exchange dealer interviewed by Yonhap Infomax explained, “The recent regional foreign exchange market lacks the possibility of a system risk crisis and the dollar rebound level is not expected to be high.” This sentiment was echoed by another dealer, who noted that the U.S. dollar had weakened due to an oversupply in the short-term market, adding, “The short-term market is currently stable with minimal unusual movements.”
Much of this tranquility comes in the wake of concerns about regional bank vulnerabilities—a hot topic just a week prior. But those worries seem to have abated, at least for now. The same dealer remarked, “Last week’s regional bank insolvency issue appears to have been resolved, and there seems to be no possibility of it spreading into a systemic risk.” As a result, the dollar funding level has remained relatively unchanged, with U.S. interest rates nudging slightly higher and the Korea-U.S. interest rate differential being absorbed into the market’s pricing.
Yet, not all segments of the market are moving in lockstep. Dealers pointed out that while longer-term swap points fell in line with rising U.S. rates, short-term points remained firm or even edged up slightly, reflecting localized supply and demand dynamics. As one dealer put it, “There was a bit of asset swap volume in the ultra-short term, but nothing that stood out.” Another added, “Stress in the U.S. short-term money market continues, so ultra-short maturities have been somewhat heavy compared to theoretical values.”
These nuanced shifts in FX swap points are more than just numbers on a screen. They serve as a barometer for the underlying health of both global and domestic financial systems. With the immediate threat of regional bank instability apparently off the table, market participants are now recalibrating their expectations, wary but cautiously optimistic about the near future.
While currency traders and bankers kept a close eye on swap point fluctuations, another major event was unfolding in the country’s labor sector. On October 17, 2025, the Financial Supervisory Service (FSS) and other key authorities convened at the FSS headquarters in Seoul for a high-profile meeting: the ‘Public Officials and Traders Meeting on the Prevention of Public Officials and Traders’ Illegal Activities.’ Around 200 participants, including financial supervisors and public officials from the FSS and related organizations, gathered to address the persistent challenge of illegal trading and insider activity in financial markets.
The meeting’s primary focus was on enhancing the prevention of illegal activities by public officials and traders, particularly the misuse of insider information and illicit trading practices. As reported by Yonhap Infomax, the FSS emphasized the need for robust cooperation among financial supervisors, public officials, and traders to effectively curb such activities. “Through this meeting, cooperation among financial supervisors, public officials, and traders will be strengthened to prevent illegal activities,” a spokesperson said.
Monitoring and prevention were highlighted as essential tools in the ongoing battle against wrongdoing. The FSS has been ramping up its efforts since 2021, intensifying inspections and oversight to ensure compliance and transparency. “The meeting also emphasized the importance of monitoring and preventing illegal activities related to public officials and traders, including insider trading and illegal reporting,” the FSS stated. These initiatives are part of a broader push to restore public confidence in financial institutions and to uphold the rule of law in markets that are often vulnerable to abuse.
But the focus on integrity and fairness wasn’t limited to the financial sector. In a parallel move, Gyeonggi Province and the city of Paju took a significant step to protect the rights of apartment workers—security guards, janitors, and other staff who often labor under precarious, ultra-short-term contracts. On October 17, 2025, more than 200 stakeholders gathered at the Unjeong Danurim Senior Welfare Center in Paju for the ‘Declaration of Win-Win Cooperation for Apartment Workers.’
The event, designed to foster labor-management harmony, attracted Paju’s mayor, the city council chair, the Gyeonggi Provincial Director of Labor Rights, and representatives from residents’ associations, labor unions, and apartment complexes—75 in total. The declaration aimed to eradicate the practice of ultra-short-term contracts and to guarantee employment stability for these workers. It outlined key commitments: employers’ responsibility to ensure job security, workers’ role in fostering a positive communal living culture, and Paju City’s ongoing efforts to entrench a cooperative environment.
This was more than just a symbolic gesture. By bringing together apartment residents, management associations, and labor representatives, the declaration sought to build consensus around concrete improvements in working conditions. Organizers expressed hope that the move would lead to real, tangible changes. “Through this win-win cooperation, I expect that Gyeonggi Province, local governments, and stakeholders in apartment housing will come together for mutual development,” said Cho Sang-gi, Director of Labor Rights at Gyeonggi Province. “We will continue to listen to the voices on the ground and support the protection of apartment workers’ human rights.”
Gyeonggi Province has been at the forefront of labor rights protection since 2021, running initiatives to improve awareness and safeguard the rights of non-regular and vulnerable workers. These efforts have included the ‘Apartment Worker Human Rights Protection and Awareness Improvement Support Project,’ which aims to raise standards and provide support for those who often fall through the cracks of traditional labor protections.
In summary, October 2025 has proven to be a month of both vigilance and reform in South Korea. While financial markets remain alert to global pressures and the specter of illegal activity, labor advocates are making headway in securing better conditions for essential workers. Both arenas underscore a common theme: the importance of stability, transparency, and mutual cooperation in building a fairer and more resilient society.