In the first quarter, the net financial worth (net external financial assets) of residents in Korea was $753.6 billion, down $132.1 billion from the previous quarter ($885.7 billion), the Bank of Korea said on the 27th. It fell for the second straight quarter, and the decline was the second largest since the statistics began. Net external financial assets refer to the amount obtained by subtracting domestic financial assets held by foreigners from foreign-currency financial assets held by domestic residents. The jump in the KOSPI led to an increase in the valuation of domestic stocks held by foreigners.
According to the international investment position for the first quarter released by the Bank of Korea that day, external financial assets—meaning overseas stock investments and the like by domestic residents—stood at $2.8826 trillion, up $15.0 billion from the previous quarter. In particular, securities investment fell by $15.1 billion to $1.2381 trillion. It was the first decline in securities investment since the fourth quarter of 2024 (-$2.4 billion). Demand for U.S. stock investment expanded, but the valuation of investments decreased as the U.S. stock market fell, it said.
External financial liabilities—meaning foreigners' investments in domestic stocks and the like—came to $2.1290 trillion, up $147.1 billion from the previous quarter. It was the largest increase since the fourth quarter of 2020 ($240.3 billion), the fourth quarter of 2025 ($236.5 billion), and the second quarter of 2025 ($217.7 billion). Foreigners were net sellers of domestic stocks for days on end, but valuations rose as the market climbed by even more.
Net external debt securities—external claims minus external liabilities—stood at $365.5 billion, down $7.6 billion from the previous quarter. Net external debt securities refer to loans, borrowing fund, and bonds, excluding equity investment and securities investments such as stocks, funds, and derivative financial products, and indicate a country's ability to make and service foreign exchange payments.
The Bank of Korea says that although net external debt securities decreased, there is no problem with soundness. A Bank of Korea official said, "Considering that the increase in short-term external debt is related to foreigners' sales of domestic stocks rather than borrowing, external payment capacity and external debt soundness are judged to be favorable."