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Financial Supervisory Service Picked This Year’s Main Debtor Groups
Main Debtors
Financial Supervisory Service Picked This Year’s Main Debtor Groups
  • By Jung Suk-yee
  • April 13, 2016, 03:45
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The Financial Supervisory Service has selected 10 out of the 39 South Korean conglomerates for debt restructuring agreements with debtor banks.
The Financial Supervisory Service has selected 10 out of the 39 South Korean conglomerates for debt restructuring agreements with debtor banks.

 

On April 12, the Financial Supervisory Service designated 39 main debtor groups this year, each of which had a total credit exposure of at least 1.3581 trillion won as of the end of last year. The total credit exposure of the 39 groups was 300.7 trillion won at the end of 2015, 2.3 trillion won less than a year ago.

It is the Samsung Group that has the largest debts. Its credit exposure increased by 12% year on year to 33.4 trillion won. The Hyundai Motor Group, which topped the list in 2013 and 2014, ranked second at this time. They were followed by SK, Hyundai Heavy Industries and LG. The total credit exposure of the five groups edged down from 124.7 trillion won to 124.3 trillion won between 2014 and last year, when the debts of SK, Hyundai Heavy Industries and LG decreased by 5.1 trillion won while those of Samsung and Hyundai Motor rose by 3.8 trillion won and one trillion won, respectively.

STX Offshore & Shipbuilding, S-Oil and KOLON climbed five notches from 21st to 16th, from 25th to 20th and from 26th to 21st, respectively. Each of Lotte, Hanwha and Daewoo Shipbuilding & Marine Engineering jumped three notches, too.

In the meantime, Homeplus, Kumho Petrochemical and the Taeyoung Group newly joined the ranks at this time whereas Dongbu, Hyundai Development Company, Poongsan, SPP and Hite Jinro reduced their debts to the point of being excluded from the list.

The main debtor groups may be subject to main creditor banks’ intervention with regard to their business information and the like and the latter may urge the former to improve their financial structures. In addition, certain subsidiaries may be subject to restructuring through credit risk assessments.