Samsung, LG suppliers no exception to restructuring

[THE INVESTOR] Some major suppliers of the nation’s top two electronics giants -- Samsung Electronics and LG Electronics -- are expected to face restructuring pressure amid increasing risks of financial crunch across industries.

The Financial Supervisory Service, the state financial regulator, and creditor banks have reviewed the financial status of companies with loans of more than 50 billion won (US$44 million) since April. 

Industry watchers say the banks will soon announced a list of some 30 companies whose credit ratings are evaluated to be in the lowest bracket and they will be forced to undergo rigorous restructuring programs.

This year, large electronics firms, most of them being suppliers of Samsung and LG, are no exception as they face stiff competition especially in smartphone and display areas where Chinese rivals are fast catching up with cheaper products.

Until 2014, no electronics firms were included in the restructuring list, but last year eight firms were put on the list.

By Kim Young-won (wone0102@heraldcorp.com)