Recent developments As the global financial turmoil eased, large portfolio inflows to Korea then resumed starting in April of 2009. This trend has continued, and can be attributed to the return of global investors’ appetite for risk, quantitative easing policies in developed countries, and Korea’s rapid economic recovery.
In contrast to the period before the global financial crisis, the recent capital inflows to Korea have had the following features. First, while banks’ borrowings have increased only slightly, equity and bond investment inflows have both expanded on a large scale. Second, the proportion of long-term bond investment has increased.