영업이익으로 이자 충당 못하는 기업 '32%'…8년만에 최다<br /><br />A sobering report from Korea's central bank shows that more Korean companies are struggling to pay back interest on their debt.<br />Our business correspondent Kim Hyesung has the details. <br />One out of three Korean firms were unable to make interest payments on their debt,... using just their earnings.<br />According to the Bank of Korea's financial stability report Thursday, out of the 21-thousand Korean companies surveyed,... 32 percent had a interest coverage ratio below one, the highest figure since 2010.<br />The interest coverage ratio is calculated by dividing a company's operating profit by its interest expenses. <br />A ratio below one means,... the firm's interest payment obligations are higher than its reported earnings over the cited period. <br />Around 24 percent of large-sized companies had an interest coverage ratio below one,... while 34 percent of small and mid-sized firms had a ratio that fell short of that threshold. <br />14 percent of all companies were classified zombie firms,... unable to meet debt obligations with their earnings for three straight years.<br />By sector, shipbuilding, autos, lodging and dining saw a high proportion of companies with an interest coverage ratio below one. <br />The central bank attributed this... to falling corporate profits and higher borrowing costs that were seen last year. <br />It added,... that if business conditions deteriorate amid the escalating U.S.-China trade spat,... those with an interest coverage ratio below one could surpass 37 percent.<br />As for household debt,... the pace of debt growth slowed to around five percent on-year,... with total debt amounting to 1-point-three trillion US dollars at the end of the first quarter. <br />But, the ratio of household debt to disposable income was seen at 158 percent as of the end of March,... up nearly 2 percentage points compared to a year ago.<br />That means household debt grew at a faster pace than household income,... a serious concern for Korean families and their financial health.<br />Kim Hyesung, Arirang News. <br />
