Institutions' foreign securities holdings reach record high in Q2: BOK

Korean institutions’ investment in foreign securities rose sharply to hit a record in the second quarter, driven by strong overseas stock markets, central bank data showed on Tuesday.

The outstanding value of foreign securities held by local institutional investors stood at a record $549.68 billion as of the end of June, up $46.72 billion from three months earlier, according to data from the Bank of Korea (BOK).

The figure topped the previous record of $507.83 billion, set in the fourth quarter of last year.

Foreign securities include stocks, bonds and “Korean paper,” which refers to foreign currency-denominated securities issued by the Korean government, banks or companies in overseas markets.

By type, local institutions’ investment in foreign stocks rose $45.76 billion on quarter to $334.27 billion. The value of their foreign bond holdings remained unchanged at $181.85 billion.

The BOK said that valuations of its stock holdings increased thanks to rallies in stock markets in major economies over the three months.

The Nasdaq composite Index jumped 21.4 percent, and the S&P 500 rose 14.9 percent over the cited period. The Japanese Nikkei 225 soared 37.2 percent.

Yonhap