Bank of Korea to restrict foreign borrowing

The Bank of Korea is about to impose new restriction on the amount of foreign currency borrowing South Korean companies can undertake.

The central bank said on Friday that the new measures, to be implemented by 10 August, are intended to discourage malpractice and ease upward pressure on the won.

In recent months Korea companies have increasingly been borrowing in foreign currencies with lower interest rates, notably the yen. These funds are then subsequently converted into won for domestic use