Foreign bank branches in South Korea saw their overseas borrowing rise this year, reflecting stable economic conditions in the country, the nation’s financial regulator said Thursday.

The combined foreign exchange borrowing by bank branches rose 9.8 percent, or $6.6 billion, from the end of 2011, according to the Financial Supervisory Service.

Of the total, money borrowed by bank branches on the market rose $4.3 billion, while those brought in from the lender’s main office moved up $2.3 billion, it said.

The gain marks a rebound from $9.8 billion worth of funds withdrawn by foreign bank branches from August through December of last year, when the first shock of eurozone jitters affected the global economy and caused investors to seek safe havens.

“The increase is a sign that foreign banks think South Korea’s economy is relatively safe from fallout caused by persistent eurozone woes and sluggish growth in the United States and China,” a FSS official said.

Increased overseas borrowing by foreign banks indicates they are making are making money in the country through commercial loans, forward exchanges, swaps and other financial transactions, he added.

The latest findings showed overseas borrowing by European bank branches in the country going up by $500 million in the five month period, with numbers for U.S. and Asian lenders gaining $3.1 billion and $2.1 billion, respectively.

The FSS said that while it is too early to predict, the rise in overseas borrowing should continue for the time being, as long as there are no sudden disturbances to upset the global economy. 

(Yonhap News)