SEOUL: South Korea’s ratio of short-term external debt to foreign exchange reserves ticked up during the second quarter to 28.9 percent versus a revised 28.1 percent as of end-March, central bank data showed on Tuesday. The resulting ratio for the June quarter was still smaller than the 29.1 percent seen at the end of 2015, said the Bank of Korea.
The country’s short-term external debt rose to $106.8 billion as of the end of June from a revised $104.1 billion at end-March, the same data showed. Over the same period, South Korea’s foreign reserves remained steady at $369.8 billion at end-March, and edging up to $369.9 billion as of end-June.
A separate statement from the finance ministry said short-term external debt had risen as local banks borrowed more during the second quarter. The government said despite the rise in the June quarter, the country has ample resources to pay back its debt. Total external debt owed by South Korea inched up to $391.8 billion in the second quarter, the central bank said, from a revised $389.3 billion as of end-March.
