Korea’s external debt stood at $735.6 billion at the end of the second quarter (Q2) of 2025, up $52.1 billion from $683.4 billion at the end of the previous quarter.
The ratio of short-term external debt to total external debt (21.9% in Q1 2025 → 22.7% in Q2 2025) and the ratio of short-term external debt to total reserves (36.5% in Q1 2025 → 40.7% in Q2 2025) both showed a slight increase compared with the end of the first quarter. Nevertheless, these indicators remain within historical ranges as a stable level. The foreign currency liquidity coverage ratio (LCR), which reflects domestic banks’ ability to service external debt, stood at 153.4% at the end of the second quarter, well above the regulatory requirement of 80%.
External Debt, Q2 2025
(US $billion)
|
|
2024 |
2025 |
Change
(q-o-q) |
|
Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
Q2 |
|
Total debt |
671.2 |
665.7 |
705.0 |
672.9 |
683.4 |
735.6 |
+52.1 |
|
-Short-term |
141.1 |
142.1 |
158.4 |
146.5 |
149.3 |
167.1 |
+17.7 |
|
-Long-term |
530.0 |
523.6 |
546.5 |
526.4 |
534.1 |
568.5 |
+34.4 |
|
Ratio of Short-term Debt to Total External Debt (%) |
21.0 |
24.6 |
22.5 |
21.8 |
21.9 |
22.7 |
+0.9%p |
|
Ratio of Short-term Debt to Foreign Exchange Reserves (%) |
33.7 |
39.4 |
37.7 |
35.3 |
36.5 |
40.7 |
+4.3%p |
|
External Assets in Debt Instruments |
1042.5 |
1035.1 |
1072.5 |
1060.0 |
1051.3 |
1092.8 |
+41.4 |
|
Net External Assets in Debt Instruments |
371.4 |
360.8 |
367.6 |
387.1 |
367.9 |
357.2 |
-10.7 |
*Source: International Investment Position (IIP) Q2 2025 (preliminary, Bank of Korea, August 20, 2025)
Please refer to the attached files.
