Korean firms' debt ratios fall in 2015

Published : Apr 11, 2016 - 14:16 Updated : Apr 11, 2016 - 14:16

Korean firms saw their debt-to-equity ratios fall last year on the back of increased operating profits in the metal-processing and construction sectors, the country's main bourse said Monday.

A total of 718 companies listed on the Korea Exchange (KRX), which recently reported their financial results for 2015, saw their average debt-to-equity ratio fall to 121.12 percent last year from 126.18 percent the previous year, the KRX said in a statement.

KRX (Yonhap)

For the whole of 2015, their overall capital increased 6.59 percent on-year, and their total debts rose 2.31 percent, it said.

Builders, metal-processing firms and electric equipment makers reported reduced debts helped by improved operating profits. In contrast, carmakers and paper-processing companies suffered increased debts due to an unfavorable business environment, a KRX spokesman said. (Yonhap)