2019 External Debt
External Debt Amounts to US $467.0 Billion,
Up US $25.8 Billion from Year Ago
Korea’s external debt amounted to US $467.0 billion as of the end of 2019, going up US $25.8 billion from the previous year.
- Short-term debt: US $134.5 billion, up US $8.9 billion year-on-year
- Long-term debt: US $332.5 billion, up US $16.9 billion year-on-year
External Debt, 2019
(US $billion)
|
|
2015
|
2016
|
2017
|
2018
|
2019
|
Change
|
|
Mar
|
Jun
|
Sept
|
Dec
|
q-o-q
|
y-o-y
|
|
Total debt
|
396.1
|
382.2
|
412.0
|
441.2
|
441.0
|
462.8
|
460.2
|
467.0
|
6.8
|
25.8
|
|
-Short-term
|
104.3
|
104.8
|
116.0
|
125.6
|
128.4
|
138.9
|
133.5
|
134.5
|
1.0
|
8.9
|
|
-Long-term
|
291.7
|
277.4
|
296.1
|
315.6
|
312.6
|
323.9
|
326.6
|
332.5
|
5.8
|
16.9
|
* Source: International Investment Position (IIP) at the end of 2019 (Bank of Korea, February 20, 2020)
External debt rose as borrowings in the government, commercial banks, nonbank financial institutions and corporations increased. Central bank borrowings fell due to its redemption of foreigner-owned bonds at maturity.
Government debt (up US $8.3 billion) increased due to foreign investment in Korea Treasuries. Commercial bank debt (up US $14.7 billion) rose as short-term borrowings (up US $5.5 billion), deposits by non-residents (up US $5.0 billion) and long-term foreign currency bonds (up US $3.3 billion) increased. Debt in nonbank financial institutions and corporations (up US $5.5 billion) rose due to the issuance of long-term foreign currency securities (up US $6.8 billion).
Central bank debt (down US $2.6 billion) decreased as it redeemed foreigner-owned bonds at maturity.
Soundness
External debt soundness indicators rose somewhat, but stayed stable at around 30 percent: The ratio of short-term external debt to total external debt rose to 28.8 percent and the ratio of short-term external debt to foreign exchange reserves rose to 32.9 percent.
Solvency
Net foreign assets in debt instruments (total external assets in debt instruments–total external debt) went up US $3.0 billion from the previous year to US $480.6 billion.
Short-term External Debt and External Assets in Debt Instruments
(%, %p, US $billion)
|
|
2015
|
2016
|
2017
|
2018
|
2019
|
Change
|
|
Mar
|
Jun
|
Sept
|
Dec
|
q-o-q
|
y-o-y
|
|
Ratio of short-term debt to total external debt
|
26,3
|
27.4
|
28.1
|
28.5
|
29.1
|
30.0
|
29.0
|
28.8
|
-0.2¹
|
0.3¹
|
|
Ratio of short-term debt to foreign exchange reserves
|
28.3
|
28.2
|
29.8
|
31.1
|
31.7
|
34.5
|
33.1
|
32.9
|
-0.2¹
|
1.8¹
|
|
External assets in debt instruments
|
720.5
|
781.4
|
877.4
|
918.8
|
923.9
|
942.8
|
942.3
|
947.6
|
5.3
|
28.8
|
|
Net external assets in debt instruments
|
324.5
|
399.2
|
465.4
|
477.6
|
482.9
|
479.9
|
482.1
|
480.6
|
-1.5
|
3.0
|
1. %p
The government will closely monitor the external debt situation as there are uncertainties in the global financial market, which arise from the COVID-19 outbreak and concerns over global economic slowdown. The government will work to ensure Korea’s external debt soundness continues to be stable.
Please refer to the attached pdf
