Listed Firms’ Debt Ratios Greatly Improved Since Asian Financial Crisis in 1997

The debt ratios of Korea’s listed companies were much lower last year than 15 years ago, showing their significantly improved financial health since the Asian financial crisis in 1997.

According to a report unveiled on October 16 by private researcher Korea CXO Institute, local listed companies saw their debt ratio reach 145 percent on average in 2012, falling significantly from 451.2 percent in 1997.

The number of high-risk listed companies, i.e., companies with debt ratios above 400 percent, decreased to 93 from the number of 417 in 1997 as well.

The institution said that Korea should keep an eye on its financial market, as some 10 listed companies are facing possible liquidity problems currently.