South Korea's financial regulator said Monday that the performance of two major policy lenders has improved as the restructuring of shipbuilders and two major shipping lines have been concluded.
The Financial Services Commission said it has raised the rating of the Korea Development Bank and the Export-Import Bank of Korea by one notch from C to B in its annual assessment of five public financial organizations.
Export-Import Bank of Korea (Yonhap)
The five public financial organizations are rated one of six categories, with S being the top rating, followed by A, B, C, D and E.
The head of a public financial firm who receives an A rating is paid 100 percent of his or her annual base pay as a bonus. A B rating means the head can receive 70 percent of base pay as a bonus. Those who get a D or E rating receive no performance-based bonus.
For years, South Korea's shipbuilding and shipping sectors have been struggling with a slump in oil prices and global economic slowdown that affected their businesses.
Earlier this year, Hanjin Shipping, previously the nation's No. 1 shipping line and the world's seventh largest, was liquidated as a local court declared it bankrupt after it failed to resolve its debt problems.
South Korea's top three shipyards also conducted massive self-rescue plans to tide over their worst-ever slump.
The FSC said state-run Industrial Bank of Korea received A rating for meeting its goal of providing funds to small and medium-sized companies. IBK is specialized in supporting small and medium-sized enterprises.
The rating of the bourse operator Korea Exchange and the Korea Securities Depository remained unchanged at B ratings. (Yonhap)