The net asset of South Korea's overseas investment fund is forecast to reach 100 trillion won ($84.5 billion) soon, as investors are seeking higher returns amid declining rates, market watchers said Thursday.
The figure hit a record high of 91.7 trillion won on Friday after surpassing the 90 trillion mark for the first time on Dec. 22, 2016, they said.
Real estate-based funds came to 12.7 trillion won to account for most of the total overseas investment funds, followed by equity funds with 7.5 trillion won, and fund of funds with 4.2 trillion won and bond and derivatives with 3.7 trillion won.
"Investors have recently paid attention to overseas investment funds after experiencing losses in traditional local funds amid a prolonged economic slump and low interest rates," said a Korea Financial Investment Association official.
South Korean investors had stayed away from overseas investments following the global financial crisis in 2008, but overseas equity funds sold locally have recently gained popularity, they said.
The value of net assets in overseas equity-linked funds came to 59 trillion won, more than half of the total overseas investment funds. (Yonhap)
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