Banks' short-term overseas borrowing portion hits record low in 2013

South Korean banks' short-term overseas borrowing against total foreign-currency debts dipped to the lowest level on record last year as they repaid a large amount of short-term debts and refinanced them with longer-dated debts, the financial watchdog said Tuesday. The outstanding amount of foreign-currency debts totaled US$123.9 billion at the end of last year, up $7 billion from a year ago, according to the Financial Supervisory Service. Local banks have been rushing to raise capital in preparation for massive redemptions scheduled this year and the U.S. Federal Reserve's tapering, the watchdog said.