Seoul, Nov 19 (NationPress) South Korea's overseas financial assets have reached an unprecedented level in the third quarter, fueled by a surge in stock investments and favorable investment returns, according to data released by the central bank on Wednesday.

As of the end of September, the nation's external financial assets totaled $2.79 trillion, representing an increase of $115.8 billion from the previous quarter, as per preliminary figures from the Bank of Korea (BOK), reports Yonhap news agency.

This amount is the highest ever recorded, although the rate of growth has decelerated compared to the second quarter's rise of $165.1 billion.

Within these external financial assets, the securities investments made by residents climbed by $89 billion quarter-on-quarter, reaching a new high of $1.21 trillion by the end of September.

Additionally, direct investment also reached an all-time high of $813.5 billion, marking an increase of $8.7 billion from three months prior.

Due to the growth of external financial assets outpacing that of external financial liabilities, the country's net international investment position improved by $25.8 billion quarter-on-quarter, now totaling $1.06 trillion.

This represents the first increase after three successive quarters of decline, as indicated by the data.

“Overseas investments have surged amid a robust stock market and anticipation of U.S. interest rate reductions, while reserve assets have also increased due to enhanced investment returns,” stated BOK official Im In-hyuk during a press briefing.

“Domestic stock gains have attracted more non-resident investments in Korean securities, but the depreciation of the Korean won and other factors have constrained the rise of external financial liabilities,” he added.

In another development, the central bank on Wednesday urged the implementation of measures to sustain the cash circulation system, as cash acceptance declines in public transport, retail, and other sectors.

This appeal was made during a meeting of the currency circulation system council, which included representatives from the Bank of Korea (BOK) and other relevant organizations.

“An increasing number of buses, retail outlets, and even local government-affiliated institutions have started to limit cash payments recently. The industry is also undergoing changes, with some cash transportation firms and non-bank ATM operators halting operations,” remarked BOK official Kim Gi-won.