Economy / South Korea
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Government Reining In Short-Term Foreign Debt
May 2007 | Market AlertSorry, you must be a subscriber to view this article in full. If you are a subscriber please login.
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South Korean authorities have moved to stem short-term foreign debt, a sharp increase of which has unsettled the government. The move by the Financial Supervisory Service (FSS) yesterday, asking foreign bank subsidiaries to report their foreign financing activities every ten days, follows earlier comments from government officials stressing the risks of an increased exposure to foreign-currency denominated debt. In an address to the Asian Development Bank over the weekend, South Korean Finance Minister Kwon O-Kyu deemed the increase in short-term external debt as 'excessive'. Further moves are likely, given the strong wording of comments from Finance Ministry officials.