Seoul, Feb 18 (NationPress) South Koreans have significantly increased their overseas stock investments, nearly tripling in value from the previous year to reach a historic peak in 2025, according to central bank data released on Wednesday. The total amount invested by residents in overseas equities surged to US$114.35 billion last year, a remarkable rise from $42.16 billion in 2024, as reported by the Bank of Korea (BOK) and covered by Yonhap news agency.

This new figure surpasses the previous record of $68.53 billion, which was established in 2021.

Breaking down the investments by type of investor, asset managers, securities firms, and insurers contributed $42.1 billion, followed closely by the National Pension Service (NPS) and other public institutions with $40.7 billion, and individual investors, who accounted for $31.4 billion.

A BOK official noted, “When factoring in individual investors’ overseas ETF investments via asset managers, the total overseas equity investment by individuals in 2025 likely surpassed that of the NPS and other public entities.”

The remarkable rise in overseas stock investments is considered a primary reason for the depreciation of the local currency, as it has led to increased demand for U.S. dollars, despite the favorable dollar supply resulting from the country’s current account surplus.

South Korea achieved its largest-ever annual current account surplus at $123.05 billion last year, driven by strong exports and high demand for semiconductors.

The primary income account, which includes foreign worker wages, overseas dividend payments, and interest income, saw a record surplus of $27.92 billion in 2025.

In that year, the country’s dividend income surplus increased by 11 percent year-on-year to a record $20.19 billion, while the interest income surplus fell by 4.95 percent to $9.98 billion, resulting in an overall investment income surplus of $30.17 billion.

The BOK official stated, “The surge in overseas securities investments by local investors seems to have neutralized much of the positive effects of the current account surplus on economic fundamentals.”

For months, the Korean won has traded around the significant 1,450 won per dollar level, dropping to a multi-year low of 1,480 won late last year due to the strong dollar, geopolitical uncertainties, and heavy overseas investments by local investors.

In light of the increased volatility, authorities have issued stern warnings and implemented various policy measures, helping the currency recover to above the 1,430 won mark.