Investments in overseas securities rebound in 3rd quarter

Korean investments in overseas securities rose to their highest level in five quarters in the third quarter as rises in global stock prices raised the value of shareholdings, the central bank said Thursday.

Institutional investors' investments in foreign stocks, bonds and so-called Korean Paper reached US$60.82 billion as of end-September, up $6.27 billion from three months earlier, according to the Bank of Korea (BOK).

Such investments rebounded in the third quarter from a $2.2 billion decline in the second quarter. The third-quarter data also marked the largest amount since such investments hit $63.77 billion in the second quarter of last year, the BOK said.

Korean Paper refers to foreign-currency-denominated securities issued by the South Korean government, financial institutions or companies based abroad.

The central bank said that rises in global stock prices raised the value of shareholdings held by local institutional investors.

Investments in foreign stocks rose $2.47 billion on-quarter to $29.32 billion as of end-September while those in overseas bonds gained $2.35 billion to $16.74 billion, it said. (Yonhap)