Seoul: South Koreans' overseas stock investments nearly tripled from a year earlier to an all-time high in 2025, expanding to a level comparable to the country's annual current account surplus, central bank data showed Wednesday.
According to Yonhap News Agency, residents' combined overseas equity investments amounted to US$114.35 billion last year, up significantly from $42.16 billion in 2024, as reported by the data compiled by the Bank of Korea (BOK). This figure more than doubles the previous record of $68.53 billion set in 2021.
By investor type, asset managers, securities firms, and insurers accounted for $42.1 billion of the total investments, followed by the National Pension Service (NPS) and other public institutions with $40.7 billion, and individual investors with $31.4 billion. A BOK official noted that if retail investors' overseas exchange-traded fund (ETF) investments through asset managers are considered, individuals' total direct and indirect overseas equity investment in 2025 likely exceeded that of the NPS and other public institutions.
The significant rise in overseas stock investment has been identified as a key factor contributing to the local currency's weakness, as it increased the demand for U.S. dollars despite the improved dollar supply from the current account surplus. South Korea recorded its largest-ever annual current account surplus of $123.05 billion last year, bolstered by strong exports, particularly in the semiconductor sector.
The primary income account, which monitors foreign workers' wages, dividend payments from overseas, and interest income, also achieved a record surplus of $27.92 billion in 2025. The country's dividend income surplus increased by 11 percent on-year to a record $20.19 billion, while the interest income surplus declined by 4.95 percent to $9.98 billion, resulting in an investment income surplus of $30.17 billion last year.
A BOK official stated, "The greater overseas securities investment by local investors appears to have offset a substantial portion of the positive impact of the current account surplus on economic fundamentals." For several months, the Korean won had hovered around the psychologically critical 1,450 won level per dollar, eventually declining to a multiyear low of the 1,480 won level late last year, influenced by the strong U.S. dollar, geopolitical risks, and heavy overseas securities investments by local investors.
In response to the increased volatility, authorities issued strong verbal warnings and implemented various policy measures, which have helped the currency recover to above the 1,430 won level.