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Korean Overseas Stock Investments Triple to Record High, Impacting Currency

South Korean residents' overseas stock investments soared to a historic $114.35 billion in 2025, nearly triple the previous year's total. This surge was driven by asset managers, public institutions like the National Pension Service, and individual investors. The Bank of Korea noted this heavy overseas investment increased demand for U.S. dollars, contributing to the weakness of the Korean won despite a record current account surplus. Authorities have responded with policy measures to stabilize the currency after it hit multi-year lows.

Key Points: S. Korea Overseas Stock Investments Triple to Record in 2025

  • Record $114.35B in overseas equity
  • Investments nearly tripled from 2024
  • Individual and institutional investors drove growth
  • Cited as factor in Korean won's weakness
  • Coincided with record current account surplus
2 min read

Local residents' overseas stock investments triple to record high in 2025: BOK

South Koreans' overseas stock investments hit a record $114.35 billion in 2025, nearly tripling year-on-year and impacting the Korean won's value.

"The greater overseas securities investment... appears to have offset a substantial portion of the positive impact of the current account surplus - BOK official"

Seoul, Feb 18

South Koreans' overseas stock investments nearly tripled from a year earlier to an all-time high in 2025, expanding to a level comparable to the country's annual current account surplus, central bank data showed on Wednesday.

Residents' combined overseas equity investments reached US$114.35 billion last year, up from $42.16 billion in 2024, according to the data compiled by the Bank of Korea (BOK), reports Yonhap news agency.

The figure is more than double the previous record of $68.53 billion set in 2021.

By investor type, asset managers, securities firms and insurers accounted for $42.1 billion of the total, followed by the National Pension Service (NPS) and other public institutions with $40.7 billion and individual investors with $31.4 billion.

"If retail investors' overseas exchange-traded fund (ETF) investments made through asset managers are taken into account, individuals' total direct and indirect overseas equity investment in 2025 is estimated to have exceeded that of the NPS and other public institutions," a BOK official said.

The sharp increase in overseas stock investment has been cited as a key factor behind the weakness of the local currency, as it boosted demand for U.S. dollars despite the improved dollar supply stemming from the current account surplus, he added.

South Korea posted its largest-ever annual current account surplus of $123.05 billion last year, supported by strong exports amid robust semiconductor demand.

The primary income account, which tracks the wages of foreign workers, dividend payments from overseas and interest income, also logged a record surplus of $27.92 billion in 2025.

In 2025, the country's dividend income surplus rose 11 percent on-year to a record $20.19 billion, while the interest income surplus declined 4.95 percent to $9.98 billion, bringing the investment income surplus to $30.17 billion last year.

"The greater overseas securities investment by local investors appears to have offset a substantial portion of the positive impact of the current account surplus on economic fundamentals," the BOK official said.

For months, the Korean won had hovered around the psychologically important 1,450 won level per dollar and slid to a multiyear low of the 1,480 won level late last year, pressured by the broad strength of the greenback, geopolitical risks and heavy overseas securities investments by local investors.

In response to the heightened volatility, authorities issued strong verbal warnings and have implemented various policy measures, helping the currency recover to above the 1,430 won level.

- IANS

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Reader Comments

P
Priya S
Wow, individual investors are really stepping up! $31.4 billion is no small amount. It shows a global mindset. In India, with the LRS limit, we can't invest as freely abroad, but maybe that's a good thing to protect the rupee? 🤔 Interesting to see the direct link to currency weakness.
R
Rohit P
The key takeaway for me is the National Pension Service's involvement. Our own EPFO and NPS should perhaps look at diversifying more into international equities for better long-term returns. Safety is important, but growth matters too for retirement corpus.
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Sarah B
As someone living in India, this article highlights a double-edged sword. Strong exports (like their semiconductors) create a surplus, but then sending that money overseas for stocks weakens the currency. It's a complex balance. India's focus on "Make in India" and keeping investments domestic might be a wiser strategy for now.
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Vikram M
Respectfully, I think the article downplays the risk. Tripling in one year? That smells like FOMO (Fear Of Missing Out) driving retail investors. When markets correct, these "record highs" can lead to record losses. Our SEBI does a good job of cautioning investors. Global diversification is good, but not at a frenzied pace.
K
Kavya N
The dividend income surplus is impressive! ₹20 billion+ from overseas investments. This is a lesson for us – investing in global tech giants can provide a steady income stream back home. Hope more Indian investors get easy, regulated access to such opportunities soon. 🚀

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