Foreigners′ net purchases of S. Korean bonds nearly double in 2025: data

▲ An illustration depicting South Korea's bond market (Yonhap)

bond sales-2025 tally

Foreigners' net purchases of S. Korean bonds nearly double in 2025: data

SEOUL, Jan. 15 (Yonhap) -- Foreign investors continued to remain net buyers of South Korean bonds in 2025, with their net purchases nearly doubling from the previous year, data showed Thursday.

Offshore investors purchased a net 147.1 trillion won (USD$100.1 billion) of local bonds last year, up 96.4 percent, or 72.2 trillion won, from 2024, according to the data from the Korea Financial Investors Association (KOFIA).

The outstanding balance of their bond holdings stood at 338.3 trillion won as of end-December, the data showed.

Foreigners' purchase of local bonds grew amid volatile bond yields and won-dollar exchange rates, as well as anticipations for South Korea's inclusion in the World Government Bond Index (WGBI), the association said.

South Korea's treasury yields fell in the first half of last year after the Bank of Korea reduced the country's base rate by 25 basis points each in February and May to 2.5 percent.

The yields rebounded in the second half, following a trade deal reached with the United States and an upgraded growth forecast for Asia's fourth-largest economy, the association said. Bond prices move inversely to yields.

In contrast, net purchases of bonds by local retail investors fell 24 percent on-year to 31.7 trillion won amid an increased risk appetite in the bullish stock market.

Bond issuance rose 11.5 percent from a year earlier to 969.7 trillion won in 2025.

By type, government bond issuance rose 37 percent on-year to 304.6 trillion won, while corporate bond issuance advanced 7 percent to 129.4 trillion won.

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