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Thanks to a strong U.S. stock market last year and increased overseas investments by South Korean retail investors, the country’s financial assets in the United States have surpassed $1 trillion for the first time. The share of U.S. assets in South Korea's total foreign financial assets has also reached a record high, highlighting a growing trend of concentration in U.S. investments.
According to the Bank of Korea's preliminary report on the "2025 International Investment Position by Region and Currency" released on June 25, the total foreign financial assets of South Korea, excluding reserve assets, amounted to $2.4396 trillion at the end of last year, an increase of $344.8 billion from the previous year.
Regionally, the U.S. accounted for the largest share at $1.1492 trillion, followed by the Eurozone at $307.5 billion and Southeast Asia at $279.5 billion.
Notably, financial assets in the U.S. increased by $204.2 billion over the year, crossing the $1 trillion mark for the first time. This increase is the largest ever recorded. The share of U.S. assets in total foreign financial assets also reached 47.1%, marking a record high. This figure has risen for three consecutive years, from 41.8% in 2023 to 45.1% in 2024.
In contrast, financial assets in China decreased by $4.1 billion to $139.8 billion, representing only 5.7% of total foreign financial assets.
The growing concentration of investments in the U.S. is attributed primarily to the expansion of stock investments. Moon Sang-yoon, head of the Bank of Korea's Overseas Investment Statistics Team, stated, "Financial assets in the U.S. have been increasing rapidly since the mid-2010s. The continuous net buying in stock investments, coupled with the relatively faster rise of U.S. stock prices compared to other countries, has also played a role."
He added, "As of the end of the first half of last year, the U.S. accounted for 66.9% of South Korea's overseas stock investments, which is significantly high compared to other major countries. While the domestic stock market is thriving, which may slow the growth of investments in the U.S., the likelihood of a decline in the share of U.S. financial assets remains limited."
At the end of last year, South Korea's foreign financial liabilities totaled $1.9819 trillion, an increase of $558 billion from the previous year. By country, the U.S. had the largest share at $523.1 billion, followed by Southeast Asia at $391.4 billion and the Eurozone at $331.6 billion.
In terms of currency, dollar-denominated assets accounted for the largest share at $1.5136 trillion, or 62.0% of the total. This was followed by euro-denominated assets at $223.1 billion (9.1%) and yuan-denominated assets at $115.3 billion (4.7%). Compared to the previous year, dollar-denominated assets increased by $224.9 billion, euro-denominated assets by $37.3 billion, and yuan-denominated assets by $3 billion.
Moon noted, "Last year, foreign investors recorded net withdrawals from domestic stock investments, but the significant rise in stock prices increased the value of the liabilities, or the market value of stocks held by foreigners."
According to the Bank of Korea's preliminary report on the "2025 International Investment Position by Region and Currency" released on June 25, the total foreign financial assets of South Korea, excluding reserve assets, amounted to $2.4396 trillion at the end of last year, an increase of $344.8 billion from the previous year.
Regionally, the U.S. accounted for the largest share at $1.1492 trillion, followed by the Eurozone at $307.5 billion and Southeast Asia at $279.5 billion.
Notably, financial assets in the U.S. increased by $204.2 billion over the year, crossing the $1 trillion mark for the first time. This increase is the largest ever recorded. The share of U.S. assets in total foreign financial assets also reached 47.1%, marking a record high. This figure has risen for three consecutive years, from 41.8% in 2023 to 45.1% in 2024.
In contrast, financial assets in China decreased by $4.1 billion to $139.8 billion, representing only 5.7% of total foreign financial assets.
The growing concentration of investments in the U.S. is attributed primarily to the expansion of stock investments. Moon Sang-yoon, head of the Bank of Korea's Overseas Investment Statistics Team, stated, "Financial assets in the U.S. have been increasing rapidly since the mid-2010s. The continuous net buying in stock investments, coupled with the relatively faster rise of U.S. stock prices compared to other countries, has also played a role."
He added, "As of the end of the first half of last year, the U.S. accounted for 66.9% of South Korea's overseas stock investments, which is significantly high compared to other major countries. While the domestic stock market is thriving, which may slow the growth of investments in the U.S., the likelihood of a decline in the share of U.S. financial assets remains limited."
At the end of last year, South Korea's foreign financial liabilities totaled $1.9819 trillion, an increase of $558 billion from the previous year. By country, the U.S. had the largest share at $523.1 billion, followed by Southeast Asia at $391.4 billion and the Eurozone at $331.6 billion.
In terms of currency, dollar-denominated assets accounted for the largest share at $1.5136 trillion, or 62.0% of the total. This was followed by euro-denominated assets at $223.1 billion (9.1%) and yuan-denominated assets at $115.3 billion (4.7%). Compared to the previous year, dollar-denominated assets increased by $224.9 billion, euro-denominated assets by $37.3 billion, and yuan-denominated assets by $3 billion.
Moon noted, "Last year, foreign investors recorded net withdrawals from domestic stock investments, but the significant rise in stock prices increased the value of the liabilities, or the market value of stocks held by foreigners."
* This article has been translated by AI.
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