Domestic Institutions Rush Into AI, Foreign Securities Holdings Near $550 Billion

[Financial News] South Korea’s institutions saw their foreign securities holdings jump more than 9% in just one quarter, bringing the total close to $550 billion.
According to a report released by the Bank of Korea (BOK) on the 1st, titled "Trends in Foreign Securities Investment by Major Institutional Investors in the Second Quarter of 2026," the market value of foreign securities held by major domestic institutional investors stood at $549.68 billion at the end of the second quarter. That was up 9.3%, or $46.72 billion, from $502.96 billion at the end of the previous quarter.
A BOK official explained that the increase reflected continued net investment in foreign stocks and larger valuation gains, driven by rising share prices in major markets on expectations of expanded AI-related investment.
By investor type, asset managers held $397.9 billion, up 12.6%, or $44.65 billion, from the previous quarter. Foreign exchange banks and securities firms also increased their holdings by 5.3%, or $2.81 billion, and 0.5%, or $100 million, respectively. Insurance companies, however, saw a 1.1% decline, or $840 million.
By asset class, foreign stocks posted the largest increase, rising by $45.76 billion. KP securities, meaning securities issued overseas by Korean companies, increased by $960 million. Foreign bonds were unchanged from the previous quarter at $181.85 billion.
The BOK official said foreign stocks rose on valuation gains from higher share prices in major markets and continued net investment led by asset managers. Foreign bonds, meanwhile, remained flat as concerns over price declines from rising interest rates weighed on sentiment, while bargain-buying interest pulled in the opposite direction.

[email protected] Kim Tae-il Reporter