BOK Reports Institutions’ Foreign Securities Holdings Reach Record High in 2025
Korean institutions have significantly increased their holdings in foreign securities, hitting a record high in 2025. This surge is largely attributed to robust net investments and rising asset values amid a thriving global stock market. The Bank of Korea (BOK) reported these developments on Wednesday.
Record High Investment in Foreign Securities
As of December 2025, the total value of foreign securities held by local institutional investors reached an impressive $507.83 billion. This figure reflects a remarkable 20.7 percent increase, amounting to $87.24 billion more than the previous year.
Details from the Bank of Korea
Both the outstanding balance of foreign securities and the annual growth rate set new records, showcasing the strength of foreign investment by Korean institutions. Foreign securities encompass a variety of investments, including stocks, bonds, and foreign currency-denominated securities issued by South Korean entities in overseas markets.
- Foreign Stock Holdings: Increased by $66.04 billion compared to the previous year.
- Foreign Bond Holdings: Rose by $2.22 billion.
A BOK official attributed the valuation gains to rising share prices in major markets such as the United States. Furthermore, the net investment from asset management firms has seen substantial growth.
Impact of U.S. Economic Conditions
The rise in overseas bond investment balances correlates with recent U.S. rate cuts and a decline in Treasury yields. These economic factors have created favorable conditions for Korean institutional investors looking abroad.
This trend illustrates a growing confidence among Korean institutions in diversifying their investment portfolios and tapping into global market opportunities. As a result, 2025 will be marked as a pivotal year for foreign securities investment in South Korea.
