S. Korea's foreign debt rises<\/p>\n
SEOUL (AFP): South Korea's net foreign debt soared to an
\neight-year high of US$18 billion at the end of 1995, due mainly
\nto a snowballing current account deficit, the Ministry of Finance
\nand Economy (MFE) said yesterday.<\/p>\n
The country's total foreign debt swelled by $21.2 billion
\nduring 1995 to $78 billion, while its overseas assets grew to $60
\nbillion, up $13.5 billion from a year ago, the ministry's
\ntentative tallies showed.<\/p>\n
Accordingly, the net foreign liabilities, which excludes the
\nnation's overseas assets from the total debt, in 1995 stood at
\n$7.7 billion, bringing total net foreign debt to an all-time high
\nsince 1987, when South Korea owed foreign countries $22.4
\nbillion.<\/p>\n
MFE officials said an aggravated current account deficit,
\ncoupled with a surge of overseas loans by corporations to finance
\nfacility expansion were blamed for the rise in debt last year.<\/p>\n
South Korea saw its total foreign debt fall between 1985 to
\n1989, when the amount reached $29.37 billion, thanks to current-
\naccount surpluses during the period.<\/p>\n
But since then the total foreign debt steadily worsened to
\n$42.81 billion in 1992 and further to $43.87 billion in 1993.<\/p>\n
South Korea's gross domestic product amounted to $379.5
\nbillion in 1994, and is estimated to have grown around 9.3
\npercent last year.<\/p>",
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"sponsor": "Okusi Associates",
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