SOUTH KOREA CUTS EXPORT FINANCE LOANS
South Korea has cut loans to exporting
companies to help reduce the growing trade surplus with the
United States and the European Community, finance ministry
officials said.
    They said two billion dlrs worth of foreign currency loans
would be available to firms willing to import industrial
facilities, and 500 mln dlrs for those importing raw and
intermediary materials and parts.
    Exporters, who previously received 645 won (0.769 dlrs) for
each dollar's worth of overseas orders, will now get only 575
won (0.686 dlrs), they said.
    The officials said the government also stopped new bank
loans given to aid the installation of export-oriented
facilities by the nation's 30 largest business groups.
    A finance ministry official told Reuters the measures were
part of the South Korean government's package to curb the
increase in the nation's trade surpluses with major trading
partners.
    South Korea had a trade surplus of 7.2 billion dlrs with
the United States in 1986, against 4.1 billion in 1985. It had
a surplus of 1.09 billion dlrs last year with the EC, against
188.8 mln dlrs in 1985.
 REUTER
