MOEF ‘Trends in External Debt and Liabilities in the 2nd Quarter of 2024’ Released
External Debt at $658.3 billion… Short-term debt increased, long-term debt decreased
“Increasing volatility due to Middle East security concerns and US elections”, ‘[Seoul=EDaily Reporter Lee Ji-eun] South Korea’s external debt in the last quarter (April-June) of the second quarter decreased by $9.2 billion compared to the previous quarter. The external debt sustainability indicators have slightly improved, but are evaluated to be at a lower level compared to previous years.’,
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, ‘According to the ‘Trends in External Debt and Liabilities in the 2nd Quarter of 2024’ released by the Ministry of Economy and Finance on the 21st, external debt in the second quarter totaled $658.3 billion, a decrease of $9.2 billion (1.4%) compared to the end of the previous quarter ($667.5 billion). ‘,
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, ‘When viewed by maturity, short-term debt (maturity of less than 1 year) increased by $0.9 billion to $142 billion at the end of the previous quarter, while long-term debt (maturity over 1 year) decreased by $10.1 billion to $516.3 billion compared to the end of last year. By sector, △government -$5.1 billion △central bank -$1.1 billion △banks -$2.3 billion △other sectors (non-banking sector, public sector, private companies) -$0.7 billion, all decreased.’,
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, ‘External assets amounted to $139.7 billion, a decrease of $12.3 billion (1.2%) compared to the end of the previous quarter ($152.1 billion). Net external assets, the difference between external assets and external debt, decreased by $3.1 billion (0.8%) to $381.5 billion.’,
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, ‘External debt sustainability indicators slightly improved compared to the end of the previous quarter. The proportion of short-term debt in total external debt increased from 21.1% to 21.6%, and the proportion of short-term debt in holdings increased from 33.6% to 34.4%.’,
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, ‘However, the Ministry of Economy and Finance evaluated that these indicators are still at significantly lower levels compared to previous years. The foreign currency liquidity coverage ratio (LCR) reflecting the repayment capacity of domestic banks’ external debt stood at 145.0% as of the end of the second quarter, significantly exceeding the regulatory ratio of 80%, according to the Ministry.’,
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, ‘An official from the Ministry of Economy and Finance stated, “Amid ongoing uncertainties regarding major countries’ monetary policies, geopolitical issues such as Middle East security concerns, and the US presidential election, the situation may continue to expand the volatility of international financial markets” and said, “The government will carefully monitor the trends in external debt in close cooperation among relevant agencies.”‘,
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