Korean investors hold record-high foreign securities in 2021: KSD

Korea Securities Depository (KSD) website / Screencapture from KSD's homepage

Korean investors held a record amount of foreign securities via the Korea Securities Depository (KSD) in 2021, and their transaction volume also reached a new yearly high during the same period, the central securities depository said Thursday.

According to data from the KSD, local investors' foreign securities holdings reached $100.59 billion (120.6 trillion won) as of the end of last year. Their total transaction volume also set a new record at $490.70 billion during the same period, the KSD said.

This was driven by a buying spree of U.S. stocks last year. Ample market liquidity led Korean investors to purchase more stocks from the world's largest economy, the KSD data showed.

They held a record amount of U.S. stocks worth $67.78 billion in 2021, up 81.5 percent from a year earlier. This was equal to 87 percent of their total overseas stock holdings.

By markets, the U.S. also topped the list. Korean investors' holdings of overseas securities on the top five markets ― the U.S., Europe, Hong Kong, Japan and China ― also accounted for 97.9 percent of their total holdings, according to the KSD.

Of note was that they preferred large-cap U.S. tech stocks, such as Tesla, Apple, Nvidia and Microsoft.

Tesla was the most-preferred stock, with Korean investors holding its shares worth $15.46 billion. Apple came in second, with Nvidia and Microsoft following in the list. Amazon placed its name in sixth. Back in 2019, the e-commerce giant's stocks were the favorite of investors here.

“The KSD is taking custody of a growing amount of foreign securities amid increasing demand for overseas investment among Korean investors,” the KSD said in a statement.

“We are going to do our utmost to build a better environment for local investors to engage in swift and stable overseas investment by partnering with securities firms and foreign institutions.”

The KSD, established in 1974, is the central securities depository here, offering a diverse set of securities-related services, including issuance and distribution. (Advertorial)