South Korean investors are increasingly looking outside to place their money due to sluggish stock market and low-interest rate environment at home, with the share in offshore funds topping 30 percent of total fund investment.
As of the end of October, the number of international investment funds available to Koreans totaled 4,660, accounting for 30.3 percent of the total fund investment in the country, according to the Korea Financial Investment Association on Thursday. The balance in overseas-devoted funds reached 174.9 trillion won ($148.4 billion), taking up 27.0 percent of funds in Korea.
An international fund refers to a fund that invests in companies, properties and securities that are located outside of the investor’s country.
International fund’s share within total investment funds offered in Korea has been growing steadily in recent years amid scarcity in lucrative investments in Korea.
Its share rose from 19.4 percent in December 2015 to 28.0 percent as of the end of last year.
The country added 1,100 investment funds from January to October this year. Of the total, 640 were funds focused in overseas assets.
There were 4,660 international funds offered in the country as of the end of October, with private placement type comprising 71.2 percent. Assets under management for private investment totaled 136.4 trillion won and public-type 38.5 trillion won.
By investment type, international funds that invest in derivates were the biggest with 946 products offered. It was followed by those that invest in multiple funds with 875, funds investing in real estate with 716, funds investing in special assets with 705. The number of funds for investing in stocks and bonds totaled 511 and 278, respectively.
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