Seoul: South Korean institutions' investment in foreign securities rose 8.1 percent in the second quarter from a quarter earlier, central bank data showed Friday. The outstanding value of foreign securities held by local institutional investors stood at US$465.53 billion as of end-June, up by $34.76 billion from three months earlier.

According to Yonhap News Agency, foreign securities include stocks, bonds, and "Korean paper," which refers to foreign currency-denominated securities issued by the South Korean government, banks, and companies in overseas markets. Institutions' investment in foreign stocks advanced by $24.29 billion on-quarter, and the value of their foreign bond holdings also climbed by $9.19 billion.

"Net investments in foreign stocks and bonds have increased, resulting in valuation gains, primarily due to the strong performance of the U.S. stock market and expectations of the U.S.' interest rate cuts," a BOK official said.