South Korean Institutions’ Overseas Stock and Bond Holdings Reach Record High

South Korean institutional investors’ overseas securities holdings reached a record $549.68 billion at the end of June, according to the Bank of Korea.

The balance rose $46.72 billion, or 9.3%, from the end of March. It marked the highest level since the central bank began compiling quarterly data on overseas stock and bond investments by major asset managers, insurers, banks and securities firms in the first quarter of 2014.

Stocks drove almost all of the increase. Overseas equity holdings climbed $45.76 billion to $334.27 billion as shares tied to artificial-intelligence infrastructure, including semiconductors, rose on expectations of increased investment by U.S. technology companies. Existing holdings also recorded valuation gains, while institutions increased their overseas investments.

The S&P 500 rose 14.9% between the end of March and the end of June, while Japan’s Nikkei average gained 37.2%. Overseas bond holdings remained near $181.85 billion. The 10-year U.S. Treasury yield rose from 4.32% to 4.47% during the period, adding to bond-market volatility and dampening investment sentiment.