Turkey Ripples Hit Korea as Record Money-Market Funds Pulled
- Korean investors pull out 8.7 trillion won from MMFs on Friday
- They had been buying Middle Eastern deposits for extra yield
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Turkey’s economic troubles are reverberating in a market for short-term investors all the way across the Eurasian continent in South Korea.
Investors pulled 8.7 trillion won ($7.8 billion) from mutual funds dealing in short-term debt and other cash-like instruments on Friday, the biggest single-day outflow ever from such products, according to the latest data from the Korea Financial Investment Association. While some of that may have been down to month-end withdrawals, such funds had been snapping up securities backed by deposits at Middle East banks in recent months.