SEOUL, Nov 24 (Reuters) - South Korea returned to being a net creditor as of the end of September after a year as a net debtor as the country emerged from the fallout of the global financial crisis, central bank data showed on Tuesday.
South Korea lent $2.98 billion more than it owed overseas at the end of the third quarter on a sizable current account surplus, the Bank of Korea said in a release.
The nation’s total debt rose $18.9 billion to $397.5 billion, falling short of its total foreign credit of $400.5 billion at the end of September. That compared with a net debt of $6.4 billion in the previous quarter.
Short-term overseas borrowings declined by $1.1 billion to $146.3 billion, with their proportion of the total external debt falling to 36.8 percent from more than 40 percent a year before as improved financial market conditions allowed local companies to issue more long-dated bonds overseas.
The banking sector’s external borrowings increased to $112.7 billion in the third quarter from the previous quarter’s $107.9 billion, it said. (Reporting by Seo Eun-kyung; Editing by Jonathan Hopfner) ((firstname.lastname@example.org;+822 3704 5648; Reuters Messaging:email@example.com)) ((If you have a query or comment on this story, send an email to firstname.lastname@example.org))