South Korean investments in overseas securities fell in the second quarter from three months earlier due mainly to falls in share prices in emerging and European countries, the central bank said Tuesday.

   Institutional investors' investments in foreign stocks, bonds and so-called Korean Paper reached an outstanding US$68.9 billion as of the end of June, down $140 million from three months earlier, 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 and the eurozone prompted local asset managers to retrieve part of money parked in overseas stock funds.

   Investments in foreign stocks declined $1.28 billion on-quarter to $37.6 billion as of end-June. But investment in bonds rose $1.41 billion to $14.6 billion as heightened economic uncertainty raised investors' appetite for safe assets, the bank said.

Source: Yonhap News (August 30, 2011)