April 26, 2024

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[THE INVESTOR] Foreign investors have boosted their won-denominated bond holdings so far this year, industry data showed on April 18.

Foreign inflows to the South Korean bond market also came in spite of the US Federal Reserve’s decision to raise interest rates this year.

Offshore investors have purchased a net 16.5 trillion won (US$14.50 billion) worth of won-denominated bonds as of April 14, raising their holdings to 99.3 trillion won.

During the first 15 days of this month, when concerns about North Korea rose, foreign investors bought 2.9 trillion won worth of South Korean bonds, according to the data.

Kang Seung-won, an analyst at NH Investment & Securities, said foreign central banks and sovereign funds were among net buyers of South Korean bonds.

Kang said this year’s foreign inflows to the South Korean bond market bucked the trend, given historical market data that showed investor sentiment toward won-denominated assets had become weaker when geopolitical risks surrounding North Korea soared. 

By Alex Lee and newswires (alexlee@heraldcorp.com)