Korean Institutional Investors Increase Foreign Currency Securities Investments

The balance of foreign currency securities investments by Korean institutional investors surged by $21.96 billion in the third quarter, reaching $427.41 billion, compared to $405.45 billion at the end of June, according to a report released by the Bank of Korea on November 29.

This notable rise is attributed to valuation gains from the rise in major countries' stock prices and the fall in interest rates, as well as an expansion in net investments.

Asset Management Companies Lead the Increase

Breaking down the increase by type of institution, asset management companies led the way with an increase of $13.77 billion. Insurance companies followed with an increase of $4.51 billion, foreign exchange banks with $2.09 billion, and securities companies with $1.59 billion.

Foreign Stocks and Bonds See Significant Increases

Among the various investment products, foreign stocks saw the largest increase, amounting to $12.58 billion. This was driven by valuation gains from rising stock prices in major countries, coupled with net investments. Foreign bonds also experienced a significant increase of $7.85 billion, benefiting from valuation gains due to falling interest rates in major countries and an expansion in net investments. Additionally, foreign currency-denominated securities issued by domestic financial institutions or companies, known as Korean Paper, increased by $1.53 billion.