Reported by Kim Yong-min, yongmin@fnnews.comⓒ The Financial News.
The amount of assets held in overseas investment funds is increasing at an explosive rate this year. Since the beginning of January, the aggregate balance of overseas investment funds has increased by over 1.4 trillion won. Experts speculate that the prevailing trend of low interest rates and the stringent restrictions the government is enforcing in the real estate market are driving excess capital into overseas funds. According to industry reports on March 1, the number of overseas fund-related inquiries received by banks and securities firms has been growing exponentially of late. The news that the yield on securities was highest in the overseas sector this year has provided an added boost to individual investors seeking out overseas funds. A source in the banking industry said, “The interest in overseas investment funds began to grow last year, and is building even more rapidly this year. Our clients are becoming increasingly globalized in their investment outlooks.”
