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S. Korean Investors’ Offshore Securities Transactions Reach 100 Tril. Won in H1
Investment in Overseas Securities Keeps Growing
S. Korean Investors’ Offshore Securities Transactions Reach 100 Tril. Won in H1
  • By Yoon Young-sil
  • July 30, 2019, 12:06
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South Korean investors' offshore securities transactions surged more than 60 percent in the first half of this year compared with the second half of last year.

South Korean investors' offshore securities transactions surged more than 60 percent in the first half of this year against the six-month earlier period as local investors have actively sought for high yielding investment products to offset the lackluster South Korean market.

South Korean investors traded US$84.06 billion (99.36 trillion won) worth of foreign securities in the first half of this year, up 60.3 percent from US$52.43 billion (62.01 trillion won) in the second half of last year, according to Korea Securities Depository (KSD) on July 29.

Transactions in foreign stocks rose 23.6 percent to US$18.07 billion (21.37 trillion won) from US$14.61 billion (17.28 trillion won) during the same period. U.S. e-commerce giant Amazon was the most favorite choice by South Koreans, attracting US$970 million (1.15 trillion won) in the first six months of this year.

With a growing variability in the domestic market and a decline in global interest rates, foreign bonds also showed a significant growth. Transactions in foreign bonds jumped 74.4 percent to US$65.99 billion (78 trillion won) in the first half of the year. By region, the amount of bond investments in the European market was the largest at US$52.14 billion (61.63 trillion won), up 76.8 percent, while that in the United States increased 38.2 percent to US$26.20 billion (30.96 trillion won). Next came Brazil at US$210 million (248.18 billion won), Australia at US$70 million (82.73 billion won) and India at US$30 million (35.46 billion won).

Meanwhile, the outstanding deposits for foreign securities accounts held by South Korean investors totaled US$39.84 billion (47.09 trillion won) as of the end of June, up 9.8 percent from US$36.27 billion (42.87 trillion won) at the end of December last year. Holding in foreign stocks grew 25.2 percent to from US$9.83 billion (11.62 trillion won) to US$12.31 billion (14.55 trillion won) and investment in bonds 4.1 percent to US$27.53 billion(32.54 trillion won) over the same period.