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전체검색영역
Korean top firms turn risk adverse
Collected
2016.11.19
Distributed
2016.11.21
Source
Go Direct
Bracing up for more tough times ahead, South Korea’s top 30 companies have become risk adverse, opting to deleverage with whatever they earn instead of investing.

According to the data compiled and analyzed by the Maeil Business Newspaper Thursday, top 30 firms in terms of sales including Samsung Electronics Co., Hyundai Motor Co., Posco, LG Electronics Inc. and SK Innovation Co., have debt totaling 487 trillion won ($411.4 billion) as of the three months ended September, down 3.9 percent, or 20 trillion won, from a year earlier. From 2011 to 2015, the debt kept piling up except for 2014 - 2011 (431 trillion won), 2012 (453 trillion won), 2013 (464 trillion won), 2014 (451 trillion won) and 2015 (507 trillion won).

Ten out of 30 cut debt by more than 1 trillion won. The overcapacity industries - steelmakers and shipbuilders - reduced most. Posco downsized its debt by 6.4 trillion won over a year until the third quarter. Hyundai Heavy Industries Co. and Samsung Heavy Industries Co. reduced their debts by 5.9 trillion won and 2.5 trillion won, respectively, in the same period. Hyundai Mobis Co. also scaled down its loan by 4.8 trillion won.

KT Corp. cut its debt 621.9 trillion won, while Hyosung Corp. lowered 1.5 trillion won, SK Hynix Inc. 1.4 trillion won, Posco Daewoo Corp. 1.4 trillion won, SK Innovation Co. 1.3 trillion won, and Hyundai Steel Co. 1.1 trillion won.

The prolonged economic slump has even made the biggest companies feel the interest on debt burdensome. Since they cannot find good investment opportunities, companies used their profit to pay off debt and strengthen financial integrity instead of spending on new investments, a business source said.

By Yoon Jin-ho and Lee Yong-gun

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]