Domestic Institutional Investors Increase Overseas Securities Investment by $5.5 Billion in Q3

The Bank of Korea Announces 'Foreign Securities Investment Trends of Major Institutional Investors in Q3'

[Asia Economy Reporter Jang Sehee] In the third quarter, the balance of overseas foreign currency securities investments by domestic institutional investors increased compared to the second quarter. Despite stock valuation losses, net purchases continued, leading to an increase in stock holdings.

According to the "Foreign Currency Securities Investment Trends of Major Institutional Investors in the Third Quarter" announced by the Bank of Korea on the 29th, the balance of foreign currency securities investments (market value basis) by major domestic institutional investors was recorded at $385.6 billion as of the end of September.

This is an increase of $5.45 billion, or 1.4%, from $380.14 billion in the second quarter.

A Bank of Korea official analyzed, "By institution, the increase was centered on asset management companies," adding, "In the case of stocks, despite the decline in U.S. stock prices, steady net purchases were made."

The scale of overseas stock investments by domestic institutional investors had steadily increased since the COVID-19 outbreak but slightly decreased in the first quarter. Afterwards, in the second quarter, it increased by $18.43 billion compared to the previous quarter.

By product, investment in foreign stocks amounted to $168.08 billion, an increase of $5.08 billion.

Investment in foreign bonds was $180.57 billion, up by $820 million.

Meanwhile, by institution, the investment balance of asset management companies increased by $4.86 billion, and that of foreign exchange banks increased by $950 million, but insurance companies saw a decrease of $620 million.

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