Financial Supervisory Service Selects 32 Affiliate Groups as 'Main Debtor Groups'

Selection Results of Main Debtor Groups by Year. Photo by Financial Supervisory Service

[Asia Economy Reporter Song Seung-seop] The Financial Supervisory Service announced on the 18th that it has selected 32 affiliated business groups as "main debtor groups." The main creditor banks plan to systematically manage the credit risks of large corporate groups that require improvement.

The Financial Supervisory Service selects and manages affiliated business groups with total borrowings and bank credit exposures exceeding certain amounts as main debtor groups every year. As of the end of last year, companies with total borrowings of 1.9332 trillion KRW or more and bank credit exposure balances of 1.0763 trillion KRW or more were selected as main debtor groups this year. The groups of Jungheung Construction, Netmarble, and SeAH were included, while the groups of HMM, Janggeum Shipping, and Daewoo Construction were excluded.

The total number of affiliated companies in the 32 groups is 5,552, an increase of 456 companies (8.9%) from 5,096 the previous year. SK and Hanwha expanded their eco-friendly energy businesses, increasing their affiliated companies by 162 and 155, respectively.

The bank credit exposure balance of corporate loans in the banking sector reached 1,608.4 trillion KRW, up 173.4 trillion KRW (12.1%) from 1,435 trillion KRW a year earlier. The bank credit exposure amount for the main debtor groups also increased by 21.2 trillion KRW (8.3%) from 255.9 trillion KRW a year ago to 277.1 trillion KRW. Total borrowings amount to 546.3 trillion KRW.

The main creditor banks consist of six banks: Woori (10 groups), Industrial (8 groups), Hana (6 groups), Shinhan (5 groups), KB Kookmin (2 groups), and SC Jeil (1 group). These banks will conduct financial structure evaluations, contract agreements, and post-management for the 32 affiliated groups.

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