Korean institutions achieved a historic milestone in 2025, with their investments in foreign securities reaching an unprecedented level. According to data from the Bank of Korea (BOK), the value of these foreign securities held by local institutional investors totaled $507.83 billion by the end of December.
BOK Reports Record High in Foreign Securities Holdings for 2025
This figure represents a significant increase of 20.7 percent, translating to a rise of $87.24 billion compared to the previous year. The data indicates that both the total outstanding balance and the annual growth rate have reached record highs.
Composition of Foreign Securities
Foreign securities encompass various assets, including:
- Stocks
- Bonds
- Korean paper (foreign currency-denominated securities issued by South Korea)
In terms of asset types, local institutions witnessed a remarkable rise in foreign stock holdings, which increased by $66.04 billion year-on-year. Foreign bond holdings also saw a modest gain, up by $2.22 billion.
Market Dynamics and Influences
The growth in investments can largely be attributed to valuation gains driven by rising share prices in the United States and other major stock markets. A representative from BOK noted that net investments, particularly from asset management firms, have contributed significantly to this trend.
Additionally, overseas bond investment balances increased, aided by U.S. rate cuts and a decline in U.S. Treasury yields. This combination of favorable economic conditions has led to a surge in foreign securities holdings among Korean institutions, marking a new chapter in their investment strategies.
