Seoul, Feb 18 South Koreans' overseas stock investments nearly tripled from a year earlier to an all-time high in 2025, expanding to a level comparable to the country's annual current account surplus, central bank data showed on Wednesday.
Residents' combined overseas equity investments reached US$114.35 billion last year, up from $42.16 billion in 2024, according to the data compiled by the Bank of Korea (BOK), reports Yonhap news agency.
The figure is more than double the previous record of $68.53 billion set in 2021.
"If retail investors' overseas exchange-traded fund (ETF) investments made through asset managers are taken into account, individuals' total direct and indirect overseas equity investment in 2025 is estimated to have exceeded that of the NPS and other public institutions," a BOK official said.
The sharp increase in overseas stock investment has been cited as a key factor behind the weakness of the local currency, as it boosted demand for U.S. dollars despite the improved dollar supply stemming from the current account surplus, he added.
South Korea posted its largest-ever annual current account surplus of $123.05 billion last year, supported by strong exports amid robust semiconductor demand.
The primary income account, which tracks the wages of foreign workers, dividend payments from overseas and interest income, also logged a record surplus of $27.92 billion in 2025.
In 2025, the country's dividend income surplus rose 11 percent on-year to a record $20.19 billion, while the interest income surplus declined 4.95 percent to $9.98 billion, bringing the investment income surplus to $30.17 billion last year.
"The greater overseas securities investment by local investors appears to have offset a substantial portion of the positive impact of the current account surplus on economic fundamentals," the BOK official said.
For months, the Korean won had hovered around the psychologically important 1,450 won level per dollar and slid to a multiyear low of the 1,480 won level late last year, pressured by the broad strength of the greenback, geopolitical risks and heavy overseas securities investments by local investors.
In response to the heightened volatility, authorities issued strong verbal warnings and have implemented various policy measures, helping the currency recover to above the 1,430 won level.
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