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Institutions' investments in foreign securities rise in Q3

Bank of Korea (Yonhap)
Bank of Korea (Yonhap)
South Korean institutions' investments in foreign securities rose in the third quarter from three months earlier as global financial markets recovered from pandemic-driven losses, central bank data showed Friday.

The combined value of foreign securities held by institutional investors came to $345.4 billion as of end-September, up $8.9 billion from three months earlier, according to the Bank of Korea (BOK).

It marked a gain for the second straight quarter after a $9.5 billion fall in the first quarter when global financial markets were hit by the fallout of the COVID-19 pandemic.

Foreign securities include stocks, bonds and so-called Korean paper that refers to foreign currency-denominated securities issued by the South Korean government, banks or companies in overseas markets.

Investments in foreign stocks rose $7.4 billion on-quarter to $122.6 billion in the July-September period, mainly because stock prices in major countries shot up.

Investments in overseas bonds added $1.2 billion to $179.4 billion in the cited period on the back of major countries' monetary easing and falls in market rates, the BOK said. (Yonhap)