South Korea’s Foreign Debt Collection Woes: ⁣1.6 Trillion Won‍ Written Off

The Korea Trade Insurance Corporation has revealed that it has given up on collecting 1.6 trillion won in ​foreign receivables from 2019 to August this year. This staggering amount accounts for 29% of the total⁢ foreign bonds issued.

According to data obtained by Democratic Party of Korea member Heo Jong-sik, the total overseas debt⁣ incurred ⁢in 153 countries stands at 5.6 trillion won. The United⁣ States tops the list with 510 billion won in uncollected foreign debt, followed closely by Russia, Poland, China, Brazil, and ⁣Hong ‍Kong.

The reasons behind the failure to​ collect ​these debts are varied. The debtor’s suspension of business and disappearance account for 19%, while the lack of practical benefit in ‌taking legal action and collecting money ​through a ⁢collection agency account for 13% and 8%, respectively.

Rep. ⁢Heo emphasized that if the Korea ⁣Trade Insurance Corporation’s overseas ⁤debt recovery rate continues to decline, financial losses will ‌mount, and trading​ companies ⁢will face significant challenges in‌ securing funding. He stressed the need for preemptive and post-emptive measures to strengthen debt⁢ recovery efforts.

Key Statistics:

• Total overseas debt: 5.6 trillion won
• Uncollected foreign debt: 1.6 trillion won (29% of total)
• Countries with uncollected debt: 153
• Top countries⁤ with uncollected debt: United States, Russia, Poland, China, Brazil, and Hong Kong

By strengthening debt recovery efforts,​ the Korea Trade Insurance ⁢Corporation can mitigate financial⁤ losses and support trading companies ⁤in securing the funding they need to thrive in the global market.