Net capital outflows from Asia's fourth largest economy - South Korea - are expected to hit a record high this year and the culprit behind the move are not the usual suspects.
Korean residents - not foreigners - are driving money out of the country as a large current account surplus leads them to diversify and invest their money aboard, according to Nomura.
South Korea's net capital outflows surged to $31 billion in the first half of the year, and if that pace continues unchecked, the funds heading out for the full year would exceed the record $43 billion set in 2008 during the global financial crisis, Young Sun Kwon, economist at Nomura said.
"There is a striking contrast between now and then. In 2008, foreign investors' sold off Korean equities and bonds. Net capital outflows from foreigners totaled $32 billion in 2008," Kwon said. "Now, net capital flows from foreigners remains positive at an annual rate of $11 billion, the smallest reading since 2008."
(Read more: Asia's fight to stem fund outflows just starting)
Instead, net capital outflows from Korean residents reached a $73 billion run rate in 2013, Kwon said.
"We expect Korea to increase overseas investment, supported by its large current account surplus," Kwon said, adding that as savings increase in the country, investors are looking for higher yields elsewhere.
South Korea's seasonally adjusted current account surplus hit a record high of $7.82 billion in May, but slipped to $4.79 billion in June.