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 dollars 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 nations 30 largest business groups. A finance ministry official tolds the measures were part of the South Korean governments package to curb the increase in the nations 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.
SOUTH KOREA CUTS EXPORT FINANCE LOANS