Korean banks increase long-term foreign borrowing

South Korean banks rushed to secure long-term foreign currency loans to prepare for a possible crisis.

The Financial Supervisory Service, South Korea's financial watchdog, reported that the rollover rate of long-term external debts with a maturity of one year or more at 12 domestic banks, excluding regional banks, stood at 299.3 percent in October, sharply up from 186.6 percent a month earlier.

The sharp rise in fresh foreign debts was mainly attributable to domestic banks that proactively secured long-term funds to get ready for a crisis situation and year-end book closing, the FSS said.

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