S. Korea eases rules on state firms` foreign debt

SEOUL, March 20 (Yonhap) -- South Korea softened regulations on overseas
borrowing by state-run companies as part of efforts to help curb the local
currency's sharp slide against the U.S. dollar, officials said Friday.
Under the eased rules, public companies are able to sell debts overseas at their
discretion. They are also not required to fully hedge against their foreign
currency trading.
"The moves allow public companies to sell debts overseas more easily, and will
help boost dollar liquidity into the market," said an official at the Finance
Ministry.
According to the ministry, Korea Electric Power Corp., Korea Gas Corp. and other
state-run companies plan to borrow around US$10 billion from overseas investors
this year.
The local currency has lost around 10 percent against the dollar so far this year
on speculation over a capital outflow of foreign investors in March and rising
default risks in some Eastern European countries.
A lingering North Korean missile threat and a deeper-than-expected economic
slowdown have also been putting downward pressure on the won.
sam@yna.co.kr
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