Conglomerates still sitting on large cash piles

South Korean conglomerates are still sitting on large amounts of cash, wary of economic uncertainties and weak domestic demand, despite government pressure for them to spend more on wages, dividends and facilities, data showed Wednesday.

The combined retained cash reserves of 83 listed firms affiliated with the country’s 10 largest business groups, excluding financial units, came to 537.8 trillion won ($496 billion) as of the end of September, up 5.7 percent from 508.7 trillion won at the end of March, according to the data compiled by CEO Score, a financial information provider.

Retained cash reserves refer to accumulated earnings held by a company after taxes and dividends are paid out. The reserves also include capital surplus.

The data also showed cashable assets at the 10 conglomerates rose 5 trillion won to 153 trillion won over the cited period. (Yonhap)