South Korean holdings of foreign securities rise in 2013 on global stock rally

Institutional investors in South Korea lifted their holdings of foreign securities last year amid the global stock rally, central bank data showed Thursday. Foreign currency-denominated securities invested by financial institutions were 74.28 billion dollars as of the end of 2013, up 14.1 percent, or 9.17 billion dollars, from a year earlier, according to the Bank of Korea (BOK). The rise came amid higher global stock prices. Stocks in Japan, the United States and Europe surged 56.7 percent, 26.5 percent and 17.9 percent each last year, offsetting a fall in China and Brazil. Domestic asset managers and insurers raised their holdings of the so-called Korean Paper, which refers to foreign currency- denominated securities sold overseas by the South Korean government, financial institutions and firms. Outstanding overseas stocks held by local institutions increased by 760 million dollars in 2013 from a year earlier, and those for foreign bonds and the Korean Paper expanded by 4.45 billion dollars and 3.97 billion dollars each last year.