South Korea’s external financial assets reached a new peak in the first quarter, totaling $2.88 trillion by the end of March. This increase was primarily fueled by a rise in direct investments in the United States, as per data from the Bank of Korea. The growth rate, however, slowed compared to the previous quarter’s substantial surge of $105 billion.
Direct investments in South Korea’s external financial assets saw a $15.4 billion uptick, reaching $851.7 billion, with a notable increase in U.S. investments. Conversely, residents’ securities investments dropped by $15.1 billion to $1.24 trillion due to challenges faced by the U.S. stock market in the first quarter.
External financial liabilities surged by $147.1 billion to a record $2.13 trillion, driven by a significant rise in foreigners’ investments in domestic securities in line with a sharp uptrend in local stock prices. Non-residents’ securities investment climbed by $108.3 billion to $1.47 trillion, while direct investment decreased by $1.3 billion to $320.7 billion.
The country’s net international investment position experienced a decline of $132.1 billion year-on-year, settling at $753.6 billion, as the growth in external financial liabilities outpaced that of external financial assets. Meanwhile, South Korean stocks continued their upward trajectory, with the benchmark KOSPI index reaching a new high above 8,200 points, supported by strong performances from Samsung Electronics and SK hynix.
