Seoul: South Korea's overseas financial assets reached a fresh high in the third quarter, driven by increased stock investments and investment returns, central bank data showed Wednesday. The country's external financial assets stood at US$2.79 trillion as of end-September, up $115.8 billion from three months earlier.

According to Yonhap News Agency, this marks the largest amount ever, though the pace of its growth slowed from the second quarter's increase of $165.1 billion. Of external financial assets, residents' securities investments rose by $89 billion on-quarter to reach a new high of $1.21 trillion as of end-September. Direct investment also hit the highest-ever amount of $813.5 billion, increasing $8.7 billion from three months earlier.

As the increase in the external financial assets outpaced that of external financial liabilities, the country's net international investment position rose by $25.8 billion on-quarter to reach $1.06 trillion. It marked the first increase following three consecutive quarters of decline, the data showed.

"Overseas investments increased amid a strong stock market and expectations of U.S. interest rate cuts, while reserve assets also rose due to higher investment returns," BOK official Im In-hyuk told a press briefing. "Domestic stock gains boosted non-resident investment in Korean securities, but the weak Korean won and other factors have limited the growth of external financial liabilities," he added.