Seoul, Nov 29 South Korean institutions’ investments in foreign securities rose by 5.4% in the third quarter compared to three months prior, driven in part by higher valuations of overseas stocks and bonds, according to central bank data released Friday.
Data from the Bank of Korea (BOK) showed that the total value of foreign securities held by local institutional investors reached $427.41 billion at the end of September, up from $405.45 billion at the end of the previous quarter, Yonhap News Agency reported.
Foreign securities encompass stocks, bonds, and “Korean paper”—foreign currency-denominated securities issued abroad by the South Korean government, banks, and companies.
The increase was attributed to both a rise in the value of foreign stocks and bonds and a growth in new investments by institutional investors.
Local institutions increased their investment in foreign stocks by $12.58 billion during the third quarter, while their holdings of foreign bonds grew by $7.85 billion, according to the data.
In the first quarter, institutional investments also rose, driven by higher valuations of overseas stocks and bonds and an uptick in new investments.
The Bank of Korea (BOK) reported that the total value of foreign securities held by South Korean institutional investors reached $396.77 billion at the end of March, marking a $9.02 billion increase from the previous quarter, as cited by Yonhap News Agency.
The quarter-on-quarter growth was attributed to the rising value of foreign stocks and bonds and an increase in fresh investments.
