Net overseas investment last year reached USD 1.1 trillion, according to the Bank of Korea. Shown is the dealing room on Feb. 25 at the main branch of Hana Bank in Seoul's Jung-gu District. (Yonhap News)

By Gil Kyuyoung

Net overseas investment last year broke USD 1 trillion for the first time.

The Bank of Korea on Feb. 27 said the amount reached USD 1.1 trillion, up USD 292 billion from the previous year.

Calculated by subtracting external financial debts from external financial assets, net investment abroad measures a nation's capacity to make external payments. As of 2023, only six countries -- Japan, Germany, China, Hong Kong, Norway and Canada -- had over USD 1 trillion worth of such investment, BOK said.

The dramatic rise in the amount was thanks to higher investment by domestic investors in stocks abroad due to investment fever.

Net foreign debt, meanwhile, hit USD 398.1 billion last year, up USD 26.1 billion from 2023.

"Short-term external debt inched up from the previous year but remains at a relatively low level than in previous years," the Ministry of Economy and Finance said on Feb. 27 in a news release. "We will keep a close eye on external debt trends based on close cooperation with related organizations."

gilkyuyoung@korea.kr