The amount of foreign securities held by major South Korean institutions grew at the fastest clip in over eight years in the first quarter, partly on a surge in South Korean investment in foreign bonds, central bank data showed Tuesday.

As of the end of March, the value of foreign securities held by South Korea's institutional investors came to US$135.74 billion, up $14.75 billion from the revised $120.99 billion tallied three months earlier, according to preliminary data from the Bank of Korea.


A $14.75 billion on-quarter increase marks the fastest rate of rise since a $15.2 billion gain posted in the fourth quarter of 2007, the bank said in a press release.

The increase largely stemmed from an $8.81 billion spike in outstanding overseas bonds held by local institutions over the cited period, reaching $58.73 billion as of end-March, while the amount of foreign stocks held by South Korean institutions gained $3.08 billion to $41.98 billion.

Foreign securities include overseas stocks and bonds as well as Korean papers and foreign currency-denominated securities issued by the local government, banks and companies in overseas markets.

Investment in Korean papers by local institutions gained $2.85 billion to $35.02 billion over the cited period.

By investors, foreign securities held by local asset management firms came to $63.87 billion, up $3.71 billion from the previous quarter, with those held by local securities companies growing $1.56 billion to $9.55 billion.

Foreign securities held by local insurance firms grew by the largest margin of $6.79 billion to $49.38 billion, while those held by local banks engaged in currency exchange came to $12.94 billion, up $2.69 billion from the previous quarter. (Yonhap)