State-run firms' overseas debt hit record high in Q1

SEOUL, May 25 (Yonhap) -- South Korea's state-run companies' foreign debt rose to
an all-time high in the first quarter as they sold more overseas bonds amid
easing global financial turmoil, the central bank said Monday.

The country's state-owned firms' overseas debt stood at US$9.91 billion as of the
end of March, up 17.5 percent from the previous year, according to the Bank of
Korea (BOK). It marked the highest level since 1994 when the central bank began
to compile related data.
The BOK said a rise in their foreign debt came from increased debt offerings by
state-run companies to secure funds amid abating global financial jitters.
In the wake of the collapse of Lehman Brothers Holdings Inc., credit had almost
dried up, making it difficult for local banks and companies to borrow overseas.
Meanwhile, foreign debt held by foreign exchange authorities also reached a
record high in the first quarter mainly because the BOK tapped a $30 billion
currency swap arrangement signed with the U.S. Federal Reserve in late October.
The authorities' foreign debt amounted to $33.8 billion as of end-March, up 34.7
percent from a year earlier and reaching the highest level since 1994 when the
BOK began to compile related data, it added.
The BOK has tapped $12.5 billion out of the swap line so far, which helped ease
dollar shortage concerns facing by local banks, saddled with high overseas
short-term borrowing.
South Korea's foreign debt declined for the second consecutive quarter in the
January-March period as local banks repaid overseas borrowing amid easing global
financial meltdown.
sooyeon@yna.co.kr
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