The Bank of Korea said on the 25th that last year's balance of financial asset with the United States rose $204.2 billion from a year earlier to $1.1492 trillion. It surpassed $1 trillion for the first time on record, and the increase was also the largest ever. As U.S. stocks climbed faster than those of other countries, more retail investors put money into the United States.
External financial asset refers to financial asset that domestic residents have invested overseas. It is divided into securities investment such as stocks and bonds, and direct investment for building or acquiring overseas factories and corporations, or for mergers and acquisitions (M&A).
According to the "2025 regional- and currency-based international investment position preliminary figures" released by the Bank of Korea that day, last year's external financial asset was $2.4396 trillion, up $344.8 billion from the end of the previous year. The United States accounted for $1.1492 trillion, or 47.1% of the total. Europe (EU) was $307.5 billion (12.6%), and Southeast Asia was $279.5 billion (11.5%). The balance of investment in China fell by $4.1 billion.
About 70% of financial asset with the United States was securities such as stocks and bonds. Securities investment in the United States was $802.8 billion, larger than the combined total for the rest (China, Japan, EU, Southeast Asia, the Middle East, Latin America, and others) at $450.4 billion. Direct investment in the United States was put at $250.1 billion.
By currency, the share of the dollar in external financial asset was the largest at 62% ($1.5136 trillion). The euro was 9.1% ($223.1 billion), and the yuan was 4.7% ($115.3 billion).
Investment in the United States is expected to continue rising. A Bank of Korea official said, "Because the domestic stock market is strong, the pace of increase in U.S.-bound investment could slow, but the possibility of a decline is limited."
External financial liability totaled $1.9819 trillion, up 558.0 billion won from the end of the previous year. The increase was the largest ever. Of the increase, the United States accounted for $202.1 billion and the EU $103.6 billion. Although foreign investors were net sellers of domestic stocks and pulled out funds, the value of their holdings grew even more as the Korea Composite Stock Price Index (KOSPI) surged.