Last Year, 46 Trillion Won Net Inflow of Foreign Investment Funds... Stock Outflow and Bond Inflow

Announcement on International Finance and Foreign Exchange Market Trends

[Asia Economy Reporter Jang Sehee] The scale of foreign investment funds flowing into the domestic securities market last year recorded the largest amount in 12 years. This was due to the expansion of buying demand centered on public funds in the bond market.

According to the 'International Finance and Foreign Exchange Market Trends' announced by the Bank of Korea on the 13th, foreign investment funds in domestic securities from January to December 2021 recorded a net inflow of $38.71 billion.

In the stock market, there was a net outflow of $17.44 billion (approximately 20.7327 trillion KRW). In 2019, there was a net inflow of $2 billion, but in 2020, when COVID-19 began to spread, $18.24 billion flowed out, turning into a net outflow.

In the bond market, there was a net inflow. Last year, foreign bond investment funds recorded $56.15 billion (approximately 66.7511 trillion KRW), more than doubling from $21.71 billion in 2020.

A Bank of Korea official stated, "In the stock market, there was a short-term outflow in 2020 due to COVID-19, and in 2021, the rise in stock prices led to significant profit-taking." He added, "In the bond market, since government bond yields are higher than those of other countries with similar credit ratings, there has been a large inflow centered on public funds such as overseas central banks and sovereign wealth funds."

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