South Korea's Finance Ministry has flagged growing imbalances in the foreign exchange market, attributing the volatility primarily to surging inflows of foreign investment into domestic securities. The influx of international capital seeking exposure to South Korean equities and bonds is creating outsized demand pressures that ripple through currency markets. This dynamic reflects broader patterns where institutional money flows can distort traditional FX equilibrium—a trend worth monitoring as capital continues rotating between emerging markets and developed economies. Understanding these macro shifts helps investors grasp how geopolitical capital allocation and regulatory environments shape asset class dynamics beyond just crypto.