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Institutions' foreign securities holdings down in Q1

All News 12:00 June 02, 2022

SEOUL, June 2 (Yonhap) -- South Korean institutions' investment in foreign securities declined in the first quarter of this year amid estimated losses from their bond and stock holdings, central bank data showed Thursday.

The outstanding value of foreign securities held by local institutional investors stood at US$395.88 billion as of end-March, down $11.28 billion, or 2.8 percent, from three months earlier, according to the data from the Bank of Korea (BOK).

The decline is blamed on losses caused by bond price falls amid high-rise global yields and stock market downswings.

The on-quarter decline was the quickest since the value of their holdings fell 3.2 percent in the second quarter of 2013, the BOK said.

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

Local institutions' investment in foreign stocks shrank by $1.46 billion on-quarter, and the value of their foreign bond holdings contracted $6.74 billion over the same period.

Their investment in Korean paper also declined by $3.08 billion over the cited period, according to the data.


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