Seoul: South Korean institutions' investment in foreign securities rose 2.4 percent in the first quarter compared with the previous quarter, central bank data showed Friday. The outstanding value of foreign securities held by local institutional investors stood at $430.39 billion as of end-March, up by $10.05 billion from three months earlier.
According to Yonhap News Agency, foreign securities include stocks, bonds, and "Korean paper," which refers to foreign currency-denominated securities issued by the South Korean government, banks, and companies in overseas markets. Institutions' investment in foreign stocks advanced $6.37 billion on-quarter, and the value of their foreign bond holdings also climbed by $2.85 billion.
"Despite valuation losses from a market correction in the U.S., investors increased their holdings on bargain-hunting demand," a BOK official said. "Net investments in foreign bonds also expanded, driven by expectations of a rate cut by the U.S. Federal Reserve."