South Koreans' overseas stock investments nearly tripled from a year earlier to an all-time high in 2025, reaching a level comparable to the country's annual current account surplus, central bank data showed on February 18. The surge has been cited as a key factor behind the weakness of the Korean won.
South Koreans' combined overseas equity investments reached $114.35 billion in 2025, up from $42.16 billion in 2024, according to data compiled by the Bank of Korea (BOK) and released on February 18. The figure more than doubles the previous record of $68.53 billion set in 2021. By investor type, asset managers, securities firms and insurers accounted for $42.1 billion, followed by the National Pension Service (NPS) and other public institutions with $40.7 billion, and individual investors with $31.4 billion.
"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 has been cited as a key factor behind the weakness of the local currency, boosting demand for U.S. dollars despite improved dollar supply from the current account surplus, the official added.
South Korea posted its largest-ever annual current account surplus of $123.05 billion in 2025, supported by strong exports amid robust semiconductor demand. The primary income account logged a record surplus of $27.92 billion. Dividend income surplus rose 11 percent on-year to $20.19 billion, while interest income surplus declined 4.95 percent to $9.98 billion, bringing the investment income surplus to $30.17 billion.
"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. The Korean won hovered around the 1,450 won level per dollar and slid to a multiyear low of 1,480 won late last year, pressured by the greenback's strength, geopolitical risks and heavy overseas investments. Authorities issued strong verbal warnings and implemented policy measures, helping the currency recover to above 1,430 won.
