S. Korean institutional holdings of overseas securities hit record high

Overseas securities held by South Korean financial institutions hit a record high in the second quarter as insurers increased their holdings, central bank data showed on Friday.

Overseas securities owned by local institutional investors, including insurers, brokerages and asset managers, stood at 148.6 billion U.S. dollars as of end-June, according to the Bank of Korea (BOK).

It marked the largest-ever in history, jumping 12.03 billion dollars from three months earlier. The increase came as domestic insurers increased investment into foreign securities.

Foreign securities holdings by insurers reached 56.23 billion dollars as of end-June, up 6.5 billion dollars from three months ago.

The figure for foreign exchange banks gained 2.91 billion dollars to 16.1 billion dollars in the cited period, while the reading for asset managers rose 2.2 billion dollars to 66.07 billion dollars. The number for securities firms inched up 0.42 billion dollars to 9.97 billion dollars.

By securities, investment into foreign bonds expanded 9.2 billion dollars to 68.29 billion dollars. It was the largest quarterly gain in history. Insurers rushed to increase holdings of safe assets such as treasury bonds.

Holdings of foreign stocks reduced 0.53 billion dollars in the April-June period amid increased volatility in the global stock market. Endit