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South Korea's Financial Milestone: Record $2.79 Trillion Overseas Assets Revealed

South Korea's overseas financial assets have reached an all-time high of $2.79 trillion. This growth was primarily driven by increased securities investments and strong returns. The country's net international investment position also improved significantly after three quarters of decline. Meanwhile, the central bank is addressing challenges in the cash circulation system as digital payments become more dominant.

Key Points: South Korea Overseas Financial Assets Hit Record High Q3

  • Overseas financial assets reached record $2.79 trillion in third quarter
  • Securities investments hit new high of $1.21 trillion with $89 billion growth
  • Net international investment position rose to $1.06 trillion after three declines
  • Direct investment reached highest-ever amount of $813.5 billion
2 min read

S. Korea's overseas financial assets hit record high in Q3: BOK

South Korea's overseas financial assets reached $2.79 trillion in Q3, driven by stock investments and returns, marking the highest level ever recorded.

"Overseas investments increased amid a strong stock market and expectations of U.S. interest rate cuts, while reserve assets also rose due to higher investment returns - BOK official Im In-hyuk"

Seoul, Nov 19

South Korea's overseas financial assets reached a fresh high in the third quarter, driven by increased stock investments and investment returns, central bank data showed on Wednesday.

The country's external financial assets stood at $2.79 trillion as of end-September, up $115.8 billion from three months earlier, according to preliminary data from the Bank of Korea (BOK), reports Yonhap news agency.

It marks the largest amount ever, though the pace of its growth slowed from the second quarter's increase of $165.1 billion.

Of external financial assets, residents' securities investments rose by $89 billion on-quarter to reach a new high of $1.21 trillion as of end-September.

Direct investment also hit the highest-ever amount of $813.5 billion, increasing $8.7 billion from three months earlier.

As the increase in the external financial assets outpaced that of external financial liabilities, the country's net international investment position rose by $25.8 billion on-quarter to reach $1.06 trillion.

It marked the first increase following three consecutive quarters of decline, the data showed.

"Overseas investments increased amid a strong stock market and expectations of U.S. interest rate cuts, while reserve assets also rose due to higher investment returns," BOK official Im In-hyuk told a press briefing.

"Domestic stock gains boosted non-resident investment in Korean securities, but the weak Korean won and other factors have limited the growth of external financial liabilities," he added.

Meanwhile, the central bank on Wednesday called for measures to maintain the cash circulation system amid declining cash acceptance on public transportation, in stores and by other entities.

The call was made during a meeting of the currency circulation system council, which was attended by the Bank of Korea (BOK) and other relevant organisations.

"An increasing number of buses, stores and even local government–affiliated institutions began restricting cash payments recently. The industry is also experiencing changes, with some cash transportation firms and non-bank ATM operators suspending operations," BOK official Kim Gi-won said.

- IANS

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Reader Comments

R
Rohit P
$2.79 trillion in overseas assets is massive! South Korea's economic transformation is really inspiring. Their focus on technology and global investments has paid off well. We need similar long-term vision in India.
A
Arjun K
Interesting to see the cash circulation issue they're facing. While digital payments are convenient, completely eliminating cash can exclude many elderly and rural populations. India's approach of maintaining both options seems more balanced.
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Sarah B
The $1.21 trillion in securities investments shows how important stock markets are for wealth creation. Indian investors should also diversify globally rather than just focusing on domestic markets. Global exposure is key!
V
Vikram M
While the numbers look impressive, I wonder about the risks involved in such massive overseas investments. Currency fluctuations and global market volatility can quickly turn gains into losses. Diversification is good, but caution is needed too.
M
Michael C
South Korea's economic policies have been consistently good. Their focus on exports, technology, and now global investments is a model worth studying. Hope Indian policymakers are taking notes! 📈

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