South Korea’s debt burden reached 566 billion dollar as foreign investment in bonds increased

SEOUL: FRIDAY, MAY 21, 2021 – South Korea’s foreign debt, which is in the category of industrialized nations, remained high in the first three months of the current fiscal year, according to the central bank. The financial statements made public by the bank state that the debt burden has increased especially due to the widespread purchase of local bonds by foreigners.

According to the bank, external liabilities rose to 566 billion dollar by the end of March, up 21 billion dollar from the previous three months.

Due to the strong economy of Korea, foreign investors have increased their investment in Korean bonds. Korea’s gross domestic product (GDP) grew by 1.6 percent in the first quarter. According to the bank, this increase has reached the level before the start of COVID-19.

Compared to the country’s foreign exchange reserves, the share of short-term foreign debt increased by 1.2 percent to 37.1 percent.

Similarly, the external debt burden reached 1 trillion dollar by the end of March, up nearly 3 billion dollar from the previous three months. -XINHUA