South Korean Institutions’ Foreign Securities Holdings Decrease in Q3

SEOUL - South Korean institutions reported a decline in their investment in foreign securities during the third quarter of this year, attributed primarily to the decrease in the value of overseas stocks and bonds, as well as rising interest rates in major markets. The Bank of Korea (BOK) released data on Friday revealing the details of this downturn.

According to Yonhap News Agency, the total value of foreign securities held by local institutional investors was US$367.55 billion as of the end of September, showing a decrease of $5.9 billion from the previous quarter. This reduction in value was linked to a decrease in the value of foreign stocks and bonds held by these institutions, compounded by an increase in market rates in major global markets. Foreign securities encompass stocks, bonds, and "Korean paper," which refers to foreign currency-denominated securities issued by South Korean entities in overseas markets. The data indicated that the investment in foreign stocks by local institutions dropped by $1.54 billion in the third quarter, while their foreign bond holdings contracted by $3.28 billion.

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