External Debt, Q3 2019
External Debt Amounts to US $458.2 Billion,
Soundness Indicators Stable
Korea’s external debt fell to US $458.2 billion as of the end of September 2019, going down US $3.9 billion from the previous quarter.
- Short-term debt: US $133.8 billion, down US $6.2 billion quarter-on-quarter
- Long-term debt: US $324.4 billion, up US $2.4 billion quarter-on-quarter
External Debt, Q3 2019
(US $billion)
|
|
2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
Change
(q-o-q)
|
|
Mar
|
Jun
|
Sep
|
|
Total debt
|
424.3
|
396.1
|
382.2
|
412.0
|
440.6
|
440.6
|
462.1
|
458.2
|
-3.9
|
|
-Short-term
|
116.4
|
104.3
|
104.8
|
116.0
|
126.6
|
129.4
|
140.0
|
133.8
|
-6.2
|
|
-Long-term
|
307.9
|
291.7
|
277.4
|
296.1
|
314.0
|
311.1
|
322.0
|
324.4
|
2.4
|
* Source: International Investment Position (IIP) at the end of September 2019 (Bank of Korea, November 20, 2019)
External debt decreased as borrowings in the government, central bank and commercial banks declined. Nonbank financial institutions and corporations increased their issuance of long-term foreign currency bonds.
Government debt (down US $0.2 billion) and central bank debt (down US $2.0 billion) decreased due to the weak won and the redemption of bonds owned by foreign investors. Commercial bank debt (down US $3.0 billion) fell as banks reduced short-term borrowings (US $2.4 billion) and cut the issuance of long-term foreign currency securities (down US $1.0 billion).
Debts in nonbank financial institutions and corporations (up US $1.3 billion) increased in line with growing issuance of long-term foreign currency securities (up US $3.6 billion). Trade credit declined (down US $0.6 billion).
Soundness
External debt soundness indicators improved as the short-term debt decreased: The ratio of short-term external debt to total external debt fell to 29.2 percent and the ratio of short-term external debt to foreign exchange reserves dropped to 33.2 percent.
Solvency
Net foreign assets in debt instruments (total external assets in debt instruments–total external debt) went up US $8.7 billion from the previous quarter to US $479.8 billion.
Short-term External Debt and External Assets in Debt Instruments
(%, %p, US $billion)
|
|
2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
Change
(q-o-q)
|
|
Mar
|
Jun
|
Sep
|
|
Ratio of short-term debt to total external debt
|
27.4
|
26.3
|
27.4
|
28.1
|
28.7
|
29.4
|
30.3
|
29.2
|
-1.1¹
|
|
Ratio of short-term debt to foreign exchange reserves
|
32.0
|
28.3
|
28.2
|
29.8
|
31.4
|
31.9
|
34.7
|
33.2
|
-1.6¹
|
|
External assets in debt instruments
|
678.2
|
720.5
|
781.4
|
877.4
|
908.1
|
914.8
|
933.1
|
938.0
|
4.8
|
|
Net external assets in debt instruments
|
253.9
|
324.5
|
399.2
|
465.4
|
467.5
|
474.2
|
471.1
|
479.8
|
8.7
|
1. %p
The government will closely monitor the external debt situation as uncertainties in the global financial market continue, such as over the US-China trade talks, Hong Kong protests and Brexit. The government will strengthen its external debt management to ensure Korea’s external soundness continues to be stable.
Please refer to the attached pdf
