South Korea to ease some controls on foreign debt

[SEOUL] South Korea plans to ease some controls on overseas borrowing by financial firms, a vice finance minister said on Friday, a step seen as part of its preparations for anticipated US interest rate hikes.

Vice Finance Minister Joo Hyung-hwan said during a meeting of senior economy and finance officials that foreign-currency debt with maturities longer than one year would now be excluded from a bank levy rule introduced in 2011.

Mr Joo also said the debt levy system would instead be expanded to include credit firms, brokerages and insurers. The system currently applies to banks.

REUTERS