Korean investments in overseas securities dropped around 16 percent in 2011 from a year earlier as overseas stock investments by asset managers declined amid increased market instability, the central bank said Tuesday.

Institutional investors’ stakes in foreign stocks, bonds, and so-called Korean Paper reached an outstanding $58.2 billion as of the end of last year, down $11.4 billion from a year earlier, according to the Bank of Korea.

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

“Values of overseas stocks held by local asset managers declined amid increased market instability that stems from the eurozone debt crisis. The asset managers also retrieved part of the money invested in overseas stock funds at the request of individual investors,” a BOK official said.

Investments in foreign stocks declined $12.87 billion on-year to $27.08 billion as of end-December with those in overseas bonds rising $690 million to $13.55 billion over the cited period. (Yonhap News)