Seoul, Nov 19 (IANS) South Korea’s overseas financial assets reached a fresh high in the third quarter, driven by increased stock investments and investment returns, central bank data showed on Wednesday.

The country’s external financial assets stood at $2.79 trillion as of end-September, up $115.8 billion from three months earlier, according to preliminary data from the Bank of Korea (BOK), reports Yonhap news agency.

It marks the largest amount ever, though the pace of its growth slowed from the second quarter’s increase of $165.1 billion.

Of external financial assets, residents’ securities investments rose by $89 billion on-quarter to reach a new high of $1.21 trillion as of end-September.

Direct investment also hit the highest-ever amount of $813.5 billion, increasing $8.7 billion from three months earlier.

As the increase in the external financial assets outpaced that of external financial liabilities, the country’s net international investment position rose by $25.8 billion on-quarter to reach $1.06 trillion.

It marked the first increase following three consecutive quarters of decline, the data showed.

“Overseas investments increased amid a strong stock market and expectations of U.S. interest rate cuts, while reserve assets also rose due to higher investment returns,” BOK official Im In-hyuk told a press briefing.

“Domestic stock gains boosted non-resident investment in Korean securities, but the weak Korean won and other factors have limited the growth of external financial liabilities,” he added.

Meanwhile, the central bank on Wednesday called for measures to maintain the cash circulation system amid declining cash acceptance on public transportation, in stores and by other entities.

The call was made during a meeting of the currency circulation system council, which was attended by the Bank of Korea (BOK) and other relevant organisations.

“An increasing number of buses, stores and even local government–affiliated institutions began restricting cash payments recently. The industry is also experiencing changes, with some cash transportation firms and non-bank ATM operators suspending operations,” BOK official Kim Gi-won said.

–IANS

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