Synopsis
South Korea has made history as its net overseas financial assets surpassed $1 trillion for the first time, according to data from the Bank of Korea. The country's net international investment position reached $1.1 trillion by the end of 2024, reflecting significant growth in financial assets.Key Takeaways
- South Korea's net overseas financial assets surpassed $1 trillion.
- Net international investment position reached $1.1 trillion.
- External financial assets totaled $2.49 trillion.
- External debt decreased to $1.39 trillion.
- Stock market showed declines due to tariff concerns.
Seoul, Feb 27 (NationPress) For the first time in history, South Korea's net overseas financial assets have surged past $1 trillion last year, as indicated by data from the central bank released on Thursday.
The nation's net international investment position reached $1.1 trillion by the end of 2024, marking an increase of $292 billion from the previous year, according to preliminary figures from the Bank of Korea (BOK).
This achievement represents the highest amount recorded to date, positioning South Korea as the seventh country globally to report net overseas financial assets exceeding $1 trillion, as reported by Yonhap news agency.
Specifically, the country’s external financial assets hit a remarkable $2.49 trillion by the end of December, an increase of $166.3 billion compared to the prior year, driven by growth in stock investments and returns.
Conversely, the external financial debt decreased by $125.7 billion, totaling $1.39 trillion, according to the data.
Meanwhile, South Korean stocks experienced a decline on Thursday morning due to investor concerns regarding U.S. President Donald Trump's tariff strategies, despite Nvidia's earnings exceeding expectations.
The benchmark Korea Composite Stock Price Index (KOSPI) fell by 23.14 points or 0.88 percent, settling at 2,617.95 as of 11:20 a.m.
Overnight, Wall Street showed mixed results ahead of the Nvidia earnings report, which was announced post-market closure.
The AI chip leader reported a net income of $22 billion and $39.3 billion in revenue for the fourth quarter ending late January, driven by the rising demand for its cutting-edge Blackwell processors, surpassing market expectations.
In the meantime, Trump announced that his administration would soon unveil a 25 percent tariff on imports from Europe, although tariffs on Canadian and Mexican goods would be postponed for a month.
In Seoul, major market players saw declines across the board.
Market leader Samsung Electronics dropped 0.35 percent, while its competitor SK hynix fell 1.23 percent. Leading automaker Hyundai Motor decreased by 2.44 percent, and steel giant POSCO Holdings retreated by 0.53 percent.
