Bank of Korea data shows foreign stock inflows lift external liabilities faster than overseas asset growth in 2025

South Korea’s external financial assets reached a record high of about $2.87 trillion in 2025, rising $362.6 billion from a year earlier, preliminary data from the Bank of Korea showed Wednesday. Residents’ overseas securities investment increased by $271.9 billion to $1.26 trillion, while direct investment rose $66.2 billion to $828.9 billion, supported by foreign equity purchases and valuation gains from higher global stock prices.

External financial liabilities climbed by a larger $560.4 billion to $1.97 trillion, reflecting a $520 billion surge in non-residents’ securities investment amid sharp gains in domestic equities. As a result, the country’s net international investment position fell $197.8 billion to $904.2 billion, marking the first decline since 2020. Short-term external debt rose to 23.3% of total external debt, while the ratio of short-term debt to foreign reserves increased to 41.8%, the BOK said.

South Korea’s external financial assets reached a record high of about $2.87 trillion in 2025, rising $362.6 billion from a year earlier, preliminary data from the Bank of Korea showed Wednesday. Residents’ overseas securities investment increased by $271.9 billion to $1.26 trillion, while direct investment rose $66.2 billion to $828.9 billion, supported by foreign equity purchases and valuation gains from higher global stock prices.

External financial liabilities climbed by a larger $560.4 billion to $1.97 trillion, reflecting a $520 billion surge in non-residents’ securities investment amid sharp gains in domestic equities. As a result, the country’s net international investment position fell $197.8 billion to $904.2 billion, marking the first decline since 2020. Short-term external debt rose to 23.3% of total external debt, while the ratio of short-term debt to foreign reserves increased to 41.8%, the BOK said.

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