Last Year`s Foreign Liabilities of Private Companies Reach Highest Ever Level

Floatation of foreign bonds and borrowing in foreign finance organizations that increased greatly because of the expansion of Korean companies abroad made the level of foreign liabilities of private companies last year the highest ever.

According to the Bank of Korea on April 11, foreign liabilities of private companies currently total 52,694 million dollars dating back to the end of last year, an increase of 16.1 percent (7,314 million dollars) compared to 45,380 million dollars a year ago.

This amount exceeds the 51,865 million dollar mark set at the end of 1997 when the foreign exchange crisis occurred.

The foreign liability of private firms decreased to 44,228 million dollars at the end of 1998 and 44,024 million dollars at the end of 1999 in the aftermath of the foreign exchange crisis, but rose up to 46,257 million dollars by the end of 2000 and 43,002 million dollars by the end of 2001, repeating its fluctuations. Current foreign liabilities of private companies dating to the end of last year are 6.2 times as much as foreign credits totaling 8,458 million dollars.

Joong-Hyun Park sanjuck@donga.com