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Listed firms' financial health improves in H1

South Korean companies listed on the country's main bourse saw their financial soundness improve in the first quarter of the year on stalled growth in debt, data showed Monday.

The debt-to-equity ratio of 590 companies came to 111.6 percent at the end of June, down from 115.1 percent from the end of December, according to the data by the Korea Exchange and the Korea Listed Companies Association.

A key measure of financial health and stability, the ratio is calculated by dividing a company's total liabilities by its stockholders' equity. The lower the figure, the better a company's financial health.


The companies covered are non-financial firms among the 725 listed companies, which close their books in December.

Their combined equity rose 3.8 percent over the cited period to 1,024.6 trillion won ($900 billion), with their debt edging up 0.7 percent to 1,143.6 trillion won.

The data also showed 330 companies, or 55.9 percent of the total, had a debt ratio of 100 percent or lower, while the figure for 84 firms exceeded 200 percent.

Companies in real estate, chemicals, information and technology, and 20 other business sectors saw their debt-to-equity ratio drop over the cited period, with firms in agricultural and 13 other areas posting gains. (Yonhap)
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Korea Herald daum