South Korean investments in overseas securities fell 0.3 percent in the first quarter from three months earlier as overseas stock fund investments by asset managers declined amid share prices falls in emerging countries, the central bank said Monday.

   Institutional investors' investments in foreign stocks, bonds and so-called Korean Paper reached an outstanding US$69.7 billion as of the end of March, compared with $69.9 billion the previous quarter, according to the Bank of Korea (BOK).

   Korean Paper refers to foreign-currency-denominated securities issued by the South Korean government, financial institutions or companies based abroad.

   The central bank said falls in share prices in emerging countries like China and Brazil prompted local asset management firms to retrieve part of their money invested in overseas stock funds.

   Investments in foreign stocks declined $1.03 billion on-quarter to $38.9 billion as of end-March. Stock investment by asset managers declined by $1.15 billion to $35.8 billion while investment in bonds rose $410 million to $12.7 billion, the BOK said.

Source: Yonhap News (May 30, 2011)