Decline in public and commercial loans during the 1980s and 1990s

The amount of public and commercial loans substantially decreased since 1987 and amounted to about $0.5 billion per year in the early 1990s. Especially, the introduction of commercial loans was negligible since the early 1990s [Figure 1-1]. Thus, the balance of public and commercial loans began to decrease in 1986 and was around $1 billion in the middle of the 1990s [Figure 1-2].
 
[Figure 1-1] The Amount of Public and Commercial Loans Newly Introduced (1979~1996)


[Figure 1-2] The Balance of Public and Commercial Loans (1979~1996)



Source: Lee, Jinsoo. 2013. Foreign capital in economic development: Korean experiences and policies. Seoul: KDI School of Public Policy and Management.

 

During the period from 1980 to 1985, the total amount of public loans reached $9.02 billion. Most of the public loans were from international organizations, the U.S., and Japan. The amounts of public loans from international organizations, the U.S., and Japan were $3.59 billion, $2.42 billion, and $782 million, respectively. During the period from 1986 to 1992, the total amount of public loans decreased to $4.69 billion. Most of the public loans were still from international organizations. The amounts of public loans from international organizations, Japan, and France were $2.58 billion, $1.25 billion, and $668 million, respectively. Notably, there was no public loan from the U.S. for the period from 1988 to 1992 .
 
[Table 1-3] Introduction of Public Loans By Country (1980~1992)



Among the public loans of $9.02 billion introduced during the period from 1980 to 1985, $749 million were used for agriculture, forestry, and fisheries and $34 million were used for the mining industry. In addition, $558 million were used for the manufacturing industry, and $7.68 billion were used for social infrastructure and the service industry. During the period from 1986 to 1992, $59 million were used for agriculture and forestry, $518 million were used for the manufacturing industry, and $4.19 billion were used for social infrastructure and the service industry

 
[Table 1-4] Introduction of Public Loans By Industry (1980~1992)



Source: Lee, Jinsoo. 2013. Foreign capital in economic development: Korean experiences and policies. Seoul: KDI School of Public Policy and Management.
 

During the period from 1980 to 1985, the total amount of commercial loans reached $6.36 billion. Among them, the amounts of commercial loans introduced from the U.S. and Japan were $1.55 billion and $1.31 billion, respectively. Also, the U.K., and Hong Kong provided commercial loans to Korea ($1.1 billion from the U.K. and $805 million from Hong Kong). During the period from 1986 to 1992, the total amount of commercial loans reached $5.21 billion. Among them, the amounts of commercial loans introduced from Japan and the U.K. were $2.52 billion and $1.12 billion, respectively. The amount of commercial loans from the U.S. substantially decreased to $133 million during the same period

.
 

[Table 1-5] Introduction of Commercial Loans By Country (1980~1992)



Among the commercial loans of $6.36 billion introduced during the period from 1980 to 1985, $20 million was used for agriculture, forestry, and fisheries and $38 million was used for the mining industry. In addition, $2.5 billion was used for the manufacturing industry and $3.8 billion was used for social infrastructures and the service industries. On the other hand, among the commercial loans of $5.21 billion introduced during the period from 1986 to 1992, $3.48 billion was used for the manufacturing industry and $1.73 billion was used for social infrastructures and the service industries

 
[Table 1-6] Introduction of Commercial Loans by Industry (1980~1992)



Source: Lee, Jinsoo. 2013. Foreign capital in economic development: Korean experiences and policies. Seoul: KDI School of Public Policy and Management.