ID :
76065
Wed, 08/19/2009 - 15:54
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Shortlink :
https://www.oananews.org//node/76065
The shortlink copeid
Foreign investment in S. Korea rises in Q2
By Kim Soo-yeon
SEOUL, Aug. 19 (Yonhap) -- Foreign investment in South Korea climbed solidly in the second quarter as the value of foreigners' shareholdings rose on the bullish stock market and a strong local currency, the central bank said Wednesday.
Outstanding foreign investment, including securities investment, stood at US$630
billion as of the end of June, up 9 percent from three months earlier and the
first rise since the fourth quarter of 2007, according to the Bank of Korea
(BOK).
"Last quarter, foreign investors heavily picked up Seoul stocks. Valuation gains
of their stock investment also rose as the country's key stock index climbed and
the local currency gained to the greenback," a BOK official said.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 15.2 percent last
quarter mainly because foreign investors' risk appetite revived amid hopes for an
economic recovery. The Korean currency rose 7.2 percent against the dollar in the
April-June period.
Foreign securities investment, including stocks and bonds, gained by $49 billion
on-quarter to $292.4 billion, the BOK added.
Meanwhile, the country's foreign debt stood at $380.1 billion as of the end of
June, up 3 percent from three months earlier as local banks were able to borrow
overseas amid easing global financial turmoil, the BOK said.
In the fourth quarter, Korea's overseas debt declined by a record $45 billion as
lenders repaid short-term debt by tapping foreign currency liquidity provided by
authorities, it added.
Saddled with high overseas short-term debt, Korean banks had been suffering from
dollar shortages in the wake of the collapse of Lehman Brothers last September,
sparking concerns they may face difficulty in meeting financial needs and
servicing their debt.
But as the country's trade surplus is rising and local banks are making efforts
to borrow overseas, foreign currency liquidity conditions are improving, making
it easier for local banks to rollover their overseas debt.
The BOK said as long-term debt rose more than short-term debt in the second
quarter, the country saw the ratio of its short-term debt with a maturity of one
year or less to total external debt falling.
The rate stood at 38.7 percent as of end-June, down from 39.6 percent three
months earlier and compared with a record 44.6 percent posted at the end of
September 2008.
South Korea's net external debt sharply declined in the second quarter from the
previous quarter as its foreign exchange reserves climbed and the country repaid
dollar loans it tapped from its $30 billion currency swap line with the U.S. in
October last year, it added.
South Korea's net external debt reached $7.56 billion as of end-June, down from a
net debt of $24.08 billion three months earlier.
South Korea's growing foreign debt, coupled with a deficit in its current
account, led the country to become a net debtor for the first time in eight years
in the third quarter of 2008.
SEOUL, Aug. 19 (Yonhap) -- Foreign investment in South Korea climbed solidly in the second quarter as the value of foreigners' shareholdings rose on the bullish stock market and a strong local currency, the central bank said Wednesday.
Outstanding foreign investment, including securities investment, stood at US$630
billion as of the end of June, up 9 percent from three months earlier and the
first rise since the fourth quarter of 2007, according to the Bank of Korea
(BOK).
"Last quarter, foreign investors heavily picked up Seoul stocks. Valuation gains
of their stock investment also rose as the country's key stock index climbed and
the local currency gained to the greenback," a BOK official said.
The benchmark Korea Composite Stock Price Index (KOSPI) rose 15.2 percent last
quarter mainly because foreign investors' risk appetite revived amid hopes for an
economic recovery. The Korean currency rose 7.2 percent against the dollar in the
April-June period.
Foreign securities investment, including stocks and bonds, gained by $49 billion
on-quarter to $292.4 billion, the BOK added.
Meanwhile, the country's foreign debt stood at $380.1 billion as of the end of
June, up 3 percent from three months earlier as local banks were able to borrow
overseas amid easing global financial turmoil, the BOK said.
In the fourth quarter, Korea's overseas debt declined by a record $45 billion as
lenders repaid short-term debt by tapping foreign currency liquidity provided by
authorities, it added.
Saddled with high overseas short-term debt, Korean banks had been suffering from
dollar shortages in the wake of the collapse of Lehman Brothers last September,
sparking concerns they may face difficulty in meeting financial needs and
servicing their debt.
But as the country's trade surplus is rising and local banks are making efforts
to borrow overseas, foreign currency liquidity conditions are improving, making
it easier for local banks to rollover their overseas debt.
The BOK said as long-term debt rose more than short-term debt in the second
quarter, the country saw the ratio of its short-term debt with a maturity of one
year or less to total external debt falling.
The rate stood at 38.7 percent as of end-June, down from 39.6 percent three
months earlier and compared with a record 44.6 percent posted at the end of
September 2008.
South Korea's net external debt sharply declined in the second quarter from the
previous quarter as its foreign exchange reserves climbed and the country repaid
dollar loans it tapped from its $30 billion currency swap line with the U.S. in
October last year, it added.
South Korea's net external debt reached $7.56 billion as of end-June, down from a
net debt of $24.08 billion three months earlier.
South Korea's growing foreign debt, coupled with a deficit in its current
account, led the country to become a net debtor for the first time in eight years
in the third quarter of 2008.
