About 45 Billion Dollars in Overseas Stock Investment by Individuals Last Year
Figure Includes 31.4 Billion Dollars in Direct Individual Investment Plus ETF Investments via Institutions
Overseas Equity Investment Surged Across All Investor Groups, N
Last year, the scale of overseas stock investments by so?called "Seohak Ants" (Korean retail investors investing abroad) reached 45 billion dollars (about 66.231 trillion won), surpassing the National Pension Service’s overseas stock investments over the same period. As major players such as individuals, asset management companies, securities firms, and the National Pension Service all engaged in broad-based overseas stock investments, domestic residents’ overseas stock investments surged to 114.3 billion dollars last year. This largely offset the effect of the record-high current account surplus of 123.05 billion dollars.
"Record-high current account surplus led by semiconductor exports"...Investment income balance tops 30 billion dollars
According to the provisional "Balance of Payments for December 2025" released by the Bank of Korea on the 6th, last year’s net assets in the financial account came to a record 119.8 billion dollars. Domestic residents’ overseas stock investments amounted to 114.3 billion dollars, up 72.2 billion dollars from a year earlier, rising to a level comparable to the record-high current account surplus of 123.05 billion dollars over the same period. By sector, asset management companies, securities firms, and insurers accounted for 42.1 billion dollars, public institutions such as the National Pension Service for 40.7 billion dollars, and individual investors for 31.4 billion dollars. However, when adding approximately 13.6 billion dollars of individuals’ exchange-traded fund (ETF) investments, which are classified under other financial institutions, the actual amount of individuals’ overseas stock investments totals 45 billion dollars. This is about 4.3 billion dollars more than the National Pension Service’s overseas stock investments over the same period. Kim Younghwan, Director of Economic Statistics Division 1 at the Bank of Korea, said, "When ETF investments are taken into account, last year the scale of individuals’ overseas stock investments exceeded that of public institutions such as the National Pension Service," adding, "This surge in residents’ overseas stock investments significantly offset the effect of the current account surplus."
Last year, Korea’s annual current account surplus reached 123.05 billion dollars, setting a new all-time high. This figure is 17.93 billion dollars higher than the previous record of 105.12 billion dollars in 2015. It also exceeded the Bank of Korea’s projection of 115 billion dollars announced in November last year by 8.05 billion dollars.
The main reason the current account surplus far exceeded expectations was the strong performance of semiconductor exports driven by increased investment in artificial intelligence (AI). Last year’s goods account surplus rose 25% from a year earlier to a record 138.07 billion dollars, boosted by record-high goods exports of 718.94 billion dollars. On a customs-cleared basis, semiconductor exports achieved another all-time high, following the record set in the previous year. They increased 22.2% from a year earlier to 173.4 billion dollars, accounting for 24.4% of Korea’s total exports. Backed by this, total exports came to 709.7 billion dollars last year, up 3.8% from a year earlier, surpassing the previous record set in 2024. Goods imports, weighed down by falling international oil prices, decreased from 593.06 billion dollars in the previous year to 580.87 billion dollars.
With accumulated increases in overseas investments by domestic residents, the primary income account surplus also remained strong at 27.92 billion dollars. The investment income balance, which is calculated by subtracting foreigners’ income from investments in Korea from domestic residents’ income from investments abroad (dividends and interest), recorded a surplus of 30.17 billion dollars, the highest level on record.
From left: Kim Junyoung, Manager of the Balance of Payments Team; Kim Younghwan, Director of Economic Statistics Division 1; and Park Seonggon, Team Leader of the Balance of Payments Team, are speaking at a press briefing on "Preliminary Balance of Payments for December 2025" held at the Bank of Korea in Jung-gu, Seoul on the 6th. Bank of Korea
December current account surplus at 18.7 billion dollars...New all-time monthly record
In December last year, the current account posted a surplus of 18.7 billion dollars. This is the largest monthly surplus on record, far exceeding both the previous month’s 12.9 billion dollars and the 12.74 billion dollars recorded a year earlier. The surplus streak also continued for the 32nd consecutive month, marking the second-longest run in the 2000s. Robust exports centered on semiconductors and a sharp expansion in the primary income surplus due to higher dividend income played a key role.
The main driver of the current account surplus was the goods account, which has the largest weight. In December last year, the goods account surplus reached 18.85 billion dollars, setting a new all-time monthly record. This was the result of exports hitting an all-time monthly high. Exports rose 13.1% year-on-year to 71.65 billion dollars, as IT exports remained strong, led by semiconductors and information and communication devices, and non-IT exports also increased, centered on machinery and precision instruments, and pharmaceuticals. On a customs-cleared basis, semiconductor exports in December last year surged 43.1% year-on-year to 20.92 billion dollars. Exports of computer peripherals (33.1%) and wireless communication devices (24.0%) also posted strong growth, pushing overall IT exports up 32.4%. Non-IT exports also increased 2.1%, driven mainly by pharmaceuticals (27.3%) and machinery and precision instruments (2.9%). In contrast, exports of passenger cars (-4.2%) and steel products (-1.7%) declined from a year earlier.
Imports rose 1.7% to 52.8 billion dollars. Although lower energy prices continued to pull down raw material imports (-1.0%), including petroleum products (-35.2%), coal (-20.9%), gas (-7.6%), and crude oil (-3.5%), imports of consumer goods increased sharply by 17.9%, led by passenger cars and gold, resulting in a second consecutive monthly increase in total imports.
The services account recorded a deficit of 3.69 billion dollars. The deficit widened compared with both a year earlier (-2.38 billion dollars) and the previous month (-2.85 billion dollars). The travel account posted a deficit of 1.4 billion dollars. As the number of outbound travelers increased during the winter vacation peak season for overseas travel, the deficit widened from 970 million dollars in the previous month. The primary income account surplus jumped to 4.73 billion dollars, sharply higher than the 1.53 billion dollars recorded in the previous month. This was mainly due to the dividend income balance surging from 930 million dollars to 3.71 billion dollars as the impact of quarterly dividend payments on portfolio investments in the previous month dissipated.
In December last year, net assets in the financial account (assets minus liabilities) increased by 23.77 billion dollars. In direct investment, domestic residents’ overseas investments increased by 6.49 billion dollars, while foreigners’ investments in Korea increased by 5.17 billion dollars. In portfolio investment, domestic residents’ overseas investments increased by 14.37 billion dollars, mainly in equities, while foreigners’ investments in Korea increased by 5.68 billion dollars, mainly in bonds.
2026 current account expected to surpass 2025...Surplus forecast to top 130 billion dollars; tariffs and geopolitical risks are key variables
The Bank of Korea expects this year’s current account surplus to once again exceed last year’s record level. The Bank of Korea’s projection for this year is 130 billion dollars.
The outlook is that continued strong exports driven by the semiconductor supercycle will again underpin the current account surplus this year. However, as Korea’s export structure becomes more dependent on semiconductors, it is expected to be heavily influenced by whether the global trend of expanding AI-related investment continues and by changes in semiconductor market conditions. Last year, customs-cleared exports excluding semiconductors fell 1.1% from a year earlier. Kim said, "It is true that there are differences by item, but the semiconductor supercycle and the rising export trends of ships and pharmaceuticals are expected to have a positive impact," adding, "If this is accompanied by stable international oil prices and a solid upward trend in the primary income account, the current account is likely to maintain a favorable trajectory this year as well."
However, renewed tariff-related uncertainty and geopolitical risks were cited as key variables. Concerns have grown over trade uncertainty, including the 25% tariff floated last month by U.S. President Donald Trump as he pressed for passage of the Strategic Investment in America Act. Kim added, "We view the overall trend positively," and said, "Figures that reflect the various variables that have emerged since the Research Department’s November projection (an annual surplus of 130 billion dollars this year) will be available in the revised outlook to be released this month."
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