Korean financial firms, pension funds’ overseas private debt investments near $37.2 bil.

Korean financial companies and pension funds’ investments in overseas private debt funds totaled nearly 56 trillion won ($37.2 billion) this year, data showed Tuesday. Financial companies had invested 30.5 trillion won in overseas private debt funds as of end-February, while pension funds funneled 25.4 trillion won into such assets, according to data compiled by the Financial Supervisory Service (FSS). The combined amount marked a 32.7 percent increase from 40.7 trillion won recorded at the end of 2023. Financial companies’ investments had accounted for 0.42 percent of their total assets worth 7,315.3 trillion won as of the end of 2025. The FSS said it plans to closely monitor related investments and maintain close cooperation with relevant ministries. Private debt funds are high-risk investment vehicles that pool capital from investors to provide loans directly to private, non-investment-grade companies, typically offering floating-rate returns.