S. Korean Stocks Rise as Debts Drop

South Korean stocks rose for a fifth day Tuesday, led by Korea Electric Power Corp. and oil refineries, as falling interest rates and a stronger currency helped reduce the burden of debts on companies.

The benchmark Kospi index of 779 companies rose 9.85 points, or 2.5%, to 406.34, its highest close since Dec. 17. Almost four stocks rose for each that fell, with 73 unchanged. More than 74 million shares changed hands, compared with the six-month daily average of 47 million shares.

Korea Electric, the state-run utility monopoly, rose 3.6% to 17,300 won, a four-week high. The company accounts for 14.5% of the index.

SK Corp., South Korea’s biggest refinery, rose 1.4% to 14,400. The won’s 50% drop against the dollar last year ate into refining profits because the companies must import most of their raw materials.

The index of small-capitalization companies surged 3.22%. Smaller companies found it almost impossible to borrow money in recent months as banks curbed loans, forcing about one in 10 public companies to declare insolvency.