Korea`s U.S. treasury bond holdings decline sharply: Treasury

By Hwang Doo-hyong
WASHINGTON, Feb. 17 (Yonhap) -- South Korea had US$27.2 billion worth of U.S.
Treasury bonds as of the end of last year, down from $39.2 billion a year
earlier, the U.S. Department of The Treasury said Tuesday.
The sharp decline is due apparently to the sale of the bonds by the South Korean
government late last year to intervene in the volatile foreign exchange market
and buttress the falling won, which has been hit hard by the global economic
crisis.
Despite such interventions, the value of the South Korean currency has plunged,
hovering around 1,400 won against the dollar from about 900 won in late 2007.
South Korea also had been diverting its foreign exchange reserves to more
profitable equities in the U.S. and European countries since 2007.
The world's 13th biggest economy held more than $60 billion in the U.S. Treasury
bonds as of the end of 2006, the fifth largest at that time.
South Korea ranked as the 19th largest holder of U.S. Treasury bonds last year.
China had the most with $696.2 billion, followed by Japan's $578.3 billion and
Britain's $355 billion.
hdh@yna.co.kr
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