Overseas investors' net bond purchases exceed 25 tln won

SEOUL, Sept. 15 (Yonhap) -- Foreign investors' net purchases of South Korean bonds this year surpassed 25 trillion won (US$22.7 billion) amid speculation that the country might face a massive capital exodus due to financial instability, data showed Monday.

According to data provided by the Financial Supervisory Service, foreigners' net investment in the local bond market amounted to 25.5 trillion won since the beginning of this year.

Except in July, foreign investors snapped up South Korean bonds every month this
year, bringing the total outstanding bonds held by foreigners to 51.5 trillion
won as of mid-September, the data showed.

Thailand is the No. 1 investor in the bond market, with net 9 trillion won worth
of debts issued by South Korea. Germany ranked second with 3.6 trillion won,
followed by Ireland and Britain with 1.8 trillion won and 1.7 trillion won,
respectively.

The data comes after South Korea faced rumors that it might suffer a financial
meltdown similar to that of a decade ago, as roughly $6 billion worth of
foreign-owned bonds matured last week.

Stock and currency markets fluctuated over the past weeks, amplifying fears.
Government and industry experts brushed the rumors off as groundless, saying
there is no reason for such capital flight considering the fundamentals of South
Korea's economy.

kokobj@yna.co.kr

(END)