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PACIFIC WATCH

South Korea

August 07, 1995| Times Staff and Wire Reports

Government to Regulate Overseas Investment: The move is part of an effort to keep the nation's foreign debts at an appropriate level, a top official said. Vice Finance and Economy Minister Lee Suk Chae told reporters that major overseas investment projects will be approved by the government only if a certain portion of the costs are provided by the local companies. Lee said the minimum amount local companies would have to put up would be about 20% of their total investment costs. The government measure could put a damper on a recent flurry of multibillion-dollar overseas investments, particularly in the United States, by South Korean companies. Most local companies hope to tap overseas capital markets for overseas investment projects because local interest rates are about twice what international interest rates are.

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