All data are based on the daily closing price as of July 18, 2024

South Korea’s U.S. Investments Surpass $800 Billion Amid Stock Market Boom

Bank of Korea reports record-breaking external financial assets at $1.91 trillion
South Korea
Share this on

South Korean investments in the United States soared past $800 billion last year, driven by a robust U.S. stock market and favorable conditions under the Inflation Reduction Act (IRA), according to the Bank of Korea’s “2023 Regional and Currency-Based International Investment Position (Provisional)” report. This increase reflects a broader trend of South Korean companies expanding their footprint in the U.S. market, seeking growth and stability.

Total external financial assets of South Korea reached $1.91 trillion, a rise of $124.4 billion from the previous year. The U.S. emerged as the top destination, with $804.6 billion in investments, comprising $211.1 billion in direct investments and $507.5 billion in securities. The sustained growth in U.S. stock prices and increased direct investments from South Korean conglomerates in the U.S. significantly contributed to this surge.

In contrast, investments in Southeast Asia and China declined, with notable decreases of $4 billion and $9.1 billion, respectively. Meanwhile, investments in the European Union and Japan saw moderate increases, underscoring South Korea’s strategic diversification of its international portfolio.

Foreign investments in South Korea also increased, with external financial liabilities rising to $1.52 trillion, largely due to higher domestic stock prices. U.S. investments in South Korea grew by $40.3 billion, further highlighting the deepening financial ties between the two nations.

The dynamic economic relationship between South Korea and the U.S. continues to be reinforced by strategic economic partnerships and investment opportunities, positioning both countries for sustained mutual growth.

 

 

Share this on
Jakota Newsletter

Stay ahead in the JAKOTA stock markets with our roundup of vital insights

Icon scroll to top