South Korean institutions' investments in foreign securities grew at the fastest pace since 2007 last year on a rise in massive buying of foreign bonds and so-called Korean paper, central bank data showed Friday.

The outstanding value of foreign securities held by institutional investors jumped by US$20.9 billion in 2014 to $95.4 billion, marking the largest on-year gain since the $61.1 billion spike in 2007, according to the Bank of Korea.

The annual reading also represents a twofold increase from the $9.4 billion on-year gain in 2013.

Foreign securities include stocks, bonds and so-called Korean paper, which refers to foreign currency-denominated securities issued by the South Korean government, banks or companies in overseas markets.

The data showed that asset managers and insurers contributed most to last year's gains. Foreign securities held by asset managers jumped $6.05 billion on-year, while those by insurers increased $12.67 billion.

Foreign securities investments held by local institutions had hovered around the $90 billion threshold before the global financial crisis.

The outstanding value of their foreign securities investments recovered to the $90 billion level for the first time last year from $75.4 billion posted a year earlier, the central bank data showed. (Yonhap)