As Korea’s fiscal resources and inflation concerns persist, confidence in government bonds has been declining. Accordingly, foreign investors are shifting from bonds to equities, a large-scale conversion phenomenon.
In recent years, Korean bonds have provided stable yields, but with recent interest rate hikes and heightened inflation concerns, their attractiveness has declined. Thus it is evident that foreign investors are moving from government bonds to equities.
Meanwhile, the boom in AI investment has spurred corporate performance improvement and increased the growth potential of the equity market. Companies are adopting AI‑based solutions to boost productivity and competitiveness, and investors reflect these gains by favoring equities.
In this flow, the bond‑equity conversion in Korea is not merely a financial phenomenon but an important indicator reflecting structural change in the economy. The government focuses on fiscal resource management and market stabilization measures for bonds, and has been advancing policies to secure investor trust.
(This article is based on the original Korean Economic Daily article; unauthorized reproduction, duplication, distribution or public use of this work is prohibited.)