2025 IIP: Assets rise $344.8bn, liabilities up $558bn
The Bank of Korea (BOK) published its preliminary International Investment Position (IIP) for 2025. Total assets increased by $344.8 billion, while total liabilities rose by $558.0 billion.
Portfolio investment fuels asset expansion
The Bank of Korea's preliminary 2025 data shows total international investment assets increasing by $344.8 billion to $2,439.6 billion.
This growth was primarily driven by a substantial rise in portfolio investment, which expanded by $265.6 billion to reach $1,253.2 billion.
Direct investment also contributed positively, growing by $66.8 billion to $836.3 billion.
Geographically, assets held in the United States saw the largest increase, climbing by $204.2 billion to $1,149.2 billion.
Other regions like the EU and Southeast Asia also showed notable asset growth, reflecting diversified international holdings.
Financial derivatives, however, saw a decrease of $9.6 billion.
Liabilities driven by portfolio inflows
Total liabilities surged by $558.0 billion to $1,981.9 billion in 2025, primarily driven by portfolio investment, which rose by $524.1 billion to $1,364.6 billion.
Direct investment liabilities also increased by $25.7 billion.
Regionally, liabilities to the United States saw a substantial jump of $202.1 billion to $523.1 billion.
Liabilities denominated in Korean Won (KRW) also experienced a remarkable increase of $522.4 billion, indicating strong foreign investment in domestic currency assets.
Dynamic shifts in global holdings
The substantial increase in both international assets and liabilities, especially in portfolio investment, points to a highly dynamic and globally integrated economy.
The significant rise in KRW-denominated liabilities further underscores growing international confidence in domestic currency assets.
However, as preliminary data, these figures require careful monitoring for sustained trends.