[Market Now] Homeplus, Kumho Petro Chemical added to debt watch list

Homeplus, Kumho Petro Chemical and Taeyoung have been newly included in a list of 39 Korean conglomerates with debt levels growing at a significant pace, according to the Financial Supervisory Service on Tuesday.

Corporations that saw their debt increase more than 1.36 trillion won last year have been put on the financial regulator’s corporate debt watch list. 

The aggregate debt of the 39 groups stood at 300.7 trillion won last year, down 2.3 trillion won or 0.8 percent from 303 trillion won a year earlier. Their aggregate debt accounted for more than 15 percent of the 1,939 trillion won in loans extended by financial institutions last year.

Samsung Group, with more than 500 subsidiaries and affiliates, saw its outstanding debt increase the fastest among the groups, at around 13 percent, followed by Hyundai Motor Group’s 333 companies at 3 percent. S-Oil and its three subsidiaries also saw their debts rise quickly.

Main creditor banks of 39 groups will evaluate their debts by the end of next month, and push forward with restructuring at financially vulnerable companies, the FSS said. The main creditor banks are Woori, Korea Development Bank, Hana, Shinhan, KB and NH.

By Park Hyong-ki (hkp@heraldcorp.com)