S. Korean public companies aim to attract US$10 bln in foreign funds this year

SEOUL, March 5 (Yonhap) -- South Korean companies will try to attract US$10
billion worth of overseas funds this year to help alleviate local foreign
exchange market jitters, government sources said Thursday.

Sources at the Ministry of Knowledge Economy and the Ministry of Land, Transport
and Maritime Affairs said public companies submitted their plans to borrow money
from abroad to the finance ministry.
Public companies such as the Korea National Oil Corp. (KNOC), Korea Hydro &
Nuclear Power Co. (KHNP) and Korea Highway Corp. usually have high financial
credit ratings since they are controlled and owned by the government, a status
that makes it easier for them than private businesses to borrow from abroad.
Concerns of a liquidity crunch have fueled instability in the foreign exchange
market, causing the Korean won to lose ground against the U.S. dollar.
"KNOC, which is engaged in aggressive merger and acquisition efforts to buy
overseas oil and gas fields, plans to attract $1.7 billion," said an official,
who declined to be identified.
He added that Korea Electric Power Corp., Korea Gas Corp., KHNP and other
state-owned power companies will strive to borrow $500-600 million each. These
companies are under the control of the Knowledge Economy Ministry, which is in
charge of the country's industrial and energy policies.
The highway corporation and other companies operated by the transportation
ministry said they will attract $4 billion.
The measures come as South Korea's foreign reserves dipped to $201.5 billion won
last month.
yonngong@yna.co.kr
(END)