韩国央行-稳定境外净资产：展望与启示（英）-2025-19页.pdfVIP

No.2025-32

BOKIssueNote

StabilizationofNetForeign

Assets:OutlookandImplicationsNovember5,2025

LeeHeeeunandJangYejin

[Researchbackground]Korea’snetforeignassetpositionhasmassivelyincreasedinrecentyears.As

thisphenomenonisaccompaniedbyarisingdemandforforeigninvestment,therehasbeengrowing

interestinwhetherthisupwardtrendwillbesustained.Changesinacountry’snetforeignassetposition

aredeterminedbyflow(currentaccountbalance)andvaluation(exchangerates,assetprices)effects,

while,inthelongrun,theyarecloselycorrelatedwithfundamentalfactorssuchasdemographicand

fiscalfactors.Inthisstudy,drawingontheexistingbodyofresearch,weattempttoempiricallyassess

thelikelihoodofstabilizationinKorea’snetforeignassetsbyexaminingflowandvaluationeffects,as

wellasbyexploringfundamentalfactors.

[Increaseinnetforeignassetsandbackground]Korea’snetforeignassetpositionturnedpositive

(+)fromthethirdquarterof2014,asitsforeignfinancialassetsgrewfasterthanitsforeignfinancial

liabilities.Duringthefourthquarterof2024,Korea’snetforeignassetbalanceroseaboveUSD1

trillionforthefirsttimeto55%oftheGDPasofJune2025.Thisrapidexpansioninnetforeign

assetswasdrivenprimarilybyfloweffects,asthewideningcurrentaccountsurpluscausedforeigninvestment

andforeignexchangereservestorise.Valuationeffectshavemostlyworkedtoreducethenetforeign

assetposition.However,fromtheearly2020sonwards,negative(-)valuationeffectshavebeensignificantly

reducedamidanincreaseinforeignequityinvestmentandthestrengthoftheU.S.stockmarket.

[Assessmentoftheoutlookforstabilizationofnetforeignassets]