South Korea’s institutional investment in foreign securities fell in the first quarter due to financial volatility caused by the COVID-19 outbreak across the world, central bank data showed Monday.
Outstanding foreign securities, owned by local financial institutions, stood at 317.8 billion United States dollars as of the end of March, down 9.6 billion dollars, or 2.9 percent, from three months earlier, according to the Bank of Korea (BOK).
It came as the coronavirus pandemic increased volatility in the global financial market.
Domestic asset managers reduced their holdings of foreign securities by 7.3 billion dollars, while the ownership by insurers and securities firms declined by 2.3 billion dollars and 10 million dollars each.
The holdings of foreign stocks and bonds diminished by 5.2 billion dollars and 4.9 billion dollars respectively during the first quarter, but the ownership of Korean Paper grew by 0.5 billion dollars.
The Korean Paper is a foreign currency-denominated bond sold overseas by local institutions or companies.