Korean Conglomerates Taking on More Debt
kpopluv, July 9, 2014, 9:10 a.m.
The financial healths of Korean conglomerates have worsened for the 2013 year. The average debt-to-equity-ratio of Hanjin Transportation, Kumho Asiana, Hyundai Group and seven other conglomerates rose by nearly 20 percentage points last year to more than 260 percent in December.
Chaebul.com, a conglomerate research firm, said the debts of some shipping units that belong to Hanjin Transportation and Hyundai Group were more than 10 times higher than equity. The construction units of some of the conglomerates were in particularly bad shape.