(MENAFN) South Korea plans to sort out all ill-performing companies throughout the nation based on the results of a credit risk analysis on businesses that owe over USD41 million to banks, based on recent data.
The move is part of the government's comprehensive efforts to keep financially distressed companies from further obstructing the Korean economy, which is already agonizing with dropping exports and low growth.
Accordingly, over the previous year, financial regulators found that 54 firms out of the 1,900 subjected to credit analyses failed to meet the cash flow, interest coverage ratio and financial health requirements.
"With the global economy not showing signs of recovery, we'll make a stronger push in corporate reforming this year by adopting firmer standards to sort out more poor-performing firms compared with 2015," said a top official.
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