Largest-ever Overseas Investment

South Korea’s overseas investment totaled an all-time high of US$1.135 trillion last year by showing an increase of US$54.8 billion from a year ago.
South Korea’s overseas investment totaled an all-time high of US$1.135 trillion last year by showing an increase of US$54.8 billion from a year ago.

 

The Bank of Korea announced on April 21 that South Korea’s overseas investment totaled an all-time high of US$1.135 trillion last year by showing an increase of US$54.8 billion from a year ago. The amount excluding reserve assets increased by US$48.6 billion to US$767 billion.

South Korea’s investment in the United States accounted for 26.1% (US$200.4 billion) of the total and it was followed by that in Europe (17.8%, US$136.7 billion) and that in Southeast Asia (15.8%, US$121.1 billion). The growth of the investments in the U.S. and Europe was mainly led by securities investment. South Korea’s investment in China represented 15.6% (US$119.3 billion). By type of investment, direct investment in China totaled US$67.8 billion while securities investment in the U.S. amounted to US$98.6 billion. The other type of investment, covering cash, savings and loans, in Southeast Asia reached US$49.1 billion. 


In the meantime, foreign investment in South Korea decreased by US$54.7 billion to US$939.6 billion, continuing to decrease for the second consecutive year. Securities investments from the U.S. and the EU declined US$9.2 billion and US$14.3 billion from a year earlier, respectively. Those from the Middle East, Southeast Asia and Latin America fell, too. The EU’s direct investment in South Korea totaled US$59.2 billion while the securities investment from the U.S. and the other type of investment from Southeast Asia each added up to US$188.2 billion and US$62 billion.

By currency, South Korea’s overseas investment balance totaled US$405.4 billion (52.9%) for the U.S. dollar, US$86.2 billion (11.2%) for the Chinese yuan and US$64.8 billion (8.5%) for the euro. The yuan balance fell by US$11 billion whereas the U.S. dollar and Japanese yen balances rose by US$46.1 billion and US$4.9 billion, respectively. When it comes to the foreign investment balance by currency, the won accounted for 64.5% (US$606.1 billion), followed by the U.S. dollar (28.2%, US$265.2 billion) and the euro (2.3%, US$21.2 billion).

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