Global Financial Markets Recover... Q3 Institutional Overseas Securities Investment Increases by $8.9 Billion

[Image source=AP Yonhap News]

[Asia Economy Reporter Kim Eunbyeol] In the third quarter, the balance of overseas foreign currency securities investments by major institutional investors in South Korea increased by $8.9 billion.

According to the "Trends in Foreign Currency Securities Investment by Major Institutional Investors in the Third Quarter" announced by the Bank of Korea on the 27th, as of the end of September, the balance of overseas foreign currency securities investments (market value basis) by major institutional investors in South Korea stood at $345.4 billion, an increase of $8.9 billion.

As overseas stock prices rose, investment balances increased mainly among asset management companies. By type of institutional investor, investments increased by $9.1 billion for asset management companies, $0.9 billion for insurance companies, and $0.1 billion for foreign exchange banks, while securities companies saw a decrease of $1.2 billion.

Among investment assets, the largest increase was in foreign stock balances, which rose by $7.4 billion. This was due to the rise in stock prices in major countries, which increased the value of stocks held by institutions or led to increased stock purchases. In fact, in the third quarter, stock prices in the United States and Japan rose by 7.6% and 4%, respectively, compared to the second quarter.

Foreign bonds also increased by $1.2 billion, and foreign currency-denominated securities issued overseas by domestic financial institutions or companies (Korean Paper) also grew by $0.2 billion.

This content was produced with the assistance of AI translation services.