Bank of Korea Report Shows Worst Company Performance in 5 Years
kpopluv, Dec. 29, 2014, 10:26 a.m.
Companies posted their worst quarterly performance in more than five years mainly due to the strengthening of the Korean currency. The Bank of Korea says the combined sales of nearly 1,700 companies dropped by more than 3 percent during the July to September period from the same period last year. It was the second straight quarter of contraction.
In particular, sales in the manufacturing sector grew at the slowest pace since 2009 in the wake of the global financial crisis. IT companies' sales dropped by nearly 14 percent in the third quarter, the steepest drop since 2003 when the data was first compiled by the Bank of Korea.
The poor performance is prompting companies to invest less. As a result, their combined debt ratio fell by more than 1.5 percentage points from the same period last year to nearly 93 percent in the July to September period.