South Korea external debt hits record high

Published: November 23, 2017 12:59:38 | Updated: November 24, 2017 12:27:18


South Korea’s ratio of short-term external debt to foreign exchange reserves touched a record 31.1 per cent by end-September from 30.8 per cent three months ago, data showed on Thursday.

Short-term external debt rose to $119.8 billion by end-September from $117.3 billion at the end of June, the Bank of Korea said, leaving the economy slightly more vulnerable to potential financial shocks, reports Reuters.

The increase in external debt was mainly due to higher bond issuance by depository institutions as offshore demand grew, the finance ministry said in a separate statement.

Share if you like