Finance ministry reports rise in second-quarter external debt

The finance ministry said external debt rose at the end of the second quarter from the previous quarter. The increase in short-term debt mainly reflected temporary obligations during foreign investors' sales of domestic shares rather than expanded borrowing.

Short-term debt, with maturities of one year or less, rose, while long-term debt increased. Government external debt and debt in other sectors, including nonbanks, public entities and private companies, increased. Debt at the central bank and banks decreased.

Foreign claims rose. Net foreign claims increased for the first time in three quarters.

The ministry assessed external payment capacity as sound, citing increased net foreign claims and increased foreign exchange reserves. Domestic banks' foreign-currency liquidity coverage ratio stood at 167.0%, well above the regulatory requirement of 80%.

The government said it would continue efforts to maintain external soundness amid uncertainty over global trade conditions and monetary policy, as well as persistent geopolitical risks.