An official piles up dollar bills at Hana Bank's counterfeit notes response center in Seoul on April 3. [YONHAP]

Foreign reserves fell slightly last month amid efforts by authorities to manage exchange rate volatility, the central bank said on Thursday.

Korea's foreign reserves stood at $426.99 billion as of the end of May, down $880 million from the previous month, according to data from the Bank of Korea (BOK).

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The figure had risen $4.22 billion in April, following a $3.97 billion decline in March, which was the sharpest monthly drop in about a year.