Seoul, May 27 (IANS) South Korea’s overseas financial assets rose to a fresh record high in the first quarter, driven by increased direct investments in the United States, central bank data showed on Wednesday.
The country’s external financial assets stood at US$2.88 trillion as of end-March, up $15 billion from three months earlier, according to preliminary data from the Bank of Korea (BOK), reports Yonhap news agency.
It marks the largest amount ever, though the pace of its growth slowed from the fourth quarter’s increase of $105 billion.
Of external financial assets, direct investment rose $15.4 billion to $851.7 billion from three months earlier on increased U.S. investment.
Residents’ securities investments fell $15.1 billion on-quarter to $1.24 trillion as of end-March as the U.S. stock market struggled in the first quarter.
External financial liabilities increased $147.1 billion won to a record $2.13 trillion as foreigners’ investment in domestic securities surged in line with sharp increases in local stock prices.
Non-residents’ securities investment rose $108.3 billion to $1.47 trillion, while direct investment fell $1.3 billion to $320.7 billion.
As the increase in external financial liabilities outpaced that of external financial assets, the country’s net international investment position fell $132.1 billion on-year to $753.6 billion.
Meanwhile, South Korean stocks rose for the fourth consecutive session to a new peak of over the 8,200-point mark on Wednesday, driven by a strong rally by Samsung Electronics and SK hynix. The local currency gained against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) gained 181.19 points, or 2.25 percent, to close at a record 8,288.7, after rising as high as 8,457.09.
The index opened 2.42 percent higher and extended gains to surpass the 8,450-point level early in early trading, with a buy-side sidecar issued to halt the KOSPI futures for five minutes.
Overnight on Wall Street, the S&P 500 and the Nasdaq clinched all-time closing highs, lifted by surging chip stocks. Chipmaker Micron surged 19 percent to hit US$1 trillion in market value for the first time.
–IANS
na/
