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SEOUL, June 26 (Korea Bizwire) — South Korea’s financial investment in the United States surged to an all-time high in 2024, as domestic investors increasingly turned to U.S. stocks and production facilities amid a shifting global economic landscape, data from the Bank of Korea showed Thursday.
According to the central bank’s provisional international investment balance sheet, South Korea’s financial assets in the U.S. reached $962.6 billion at the end of last year, up $158.1 billion from the previous year—marking the largest annual increase ever recorded. The U.S. accounted for 45.9% of Korea’s total external financial assets, the highest share since records began in 2002.
The jump was largely driven by retail investors—known locally as “Seohak ants”—boosting holdings in U.S. equities, combined with rising asset valuations following Wall Street’s record-breaking rally. Additionally, Korean conglomerates ramped up direct investment in American production facilities, particularly in sectors like automobiles and secondary batteries.
Korea’s total external financial assets, excluding foreign reserves, stood at $2.097 trillion as of end-2023, rising $172.4 billion year-on-year.
Korean Investors Flock to Wall Street as China Exposure Shrinks (Image supported by ChatGPT)
In contrast, China’s share continued to decline for a third straight year, falling to 6.6%, its lowest on record. Bank of Korea officials attributed this to persistent U.S.-China tensions, weak Chinese domestic demand, and ongoing global supply chain realignments.
While Korea’s financial assets rose in key regions like the U.S., Japan, and the Middle East, its holdings in the EU and Latin America declined by $3.1 billion and $2.5 billion, respectively.
Meanwhile, Korea’s foreign liabilities shrank to $1.4105 trillion in 2023, down $129 billion from the previous year. The largest liabilities were to Southeast Asia ($328 billion), the U.S. ($319.1 billion), and the EU ($231.7 billion), reflecting reduced foreign investment in Korea amid falling domestic stock prices and a weakened won.
By currency, 61.9% of Korea’s external financial assets were dollar-denominated, followed by the euro (8.6%) and Chinese yuan (5.1%). Dollar-denominated holdings increased by $166.7 billion last year, while euro and won-denominated assets saw declines.
Ashley Song (ashley@koreabizwire.com)
