14 chaebols¡¯ debt ratios exceed 200%

Debt ratios of some large conglomerates or chaebol turned out far in excess of the government guideline of 200%. This was revealed by the Financial Supervisory Service, which announced Tuesday the debt ratio on combined financial statements of the 16 conglomerates.

In particular, the debt-to-equity ratio of Ssangyong Group on combined financial statement registered 1,773.4%, more than three times the ratio on conventional financial statements (608%).

Also, 14 groups out of 16 that are obliged to combined financial statements, excluding Samsung and Lotte Group, reported debt ratios exceeding 200%. When including that of financial subsidiaries, debt ratio of Samsung Group on combined statement also surpassed 200%.

Last year, chaebols satisfied the debt ratio of below 200% on individual financial statement. However, with debt ratios of over 200% on combined statement, chaebols will likely suffer severer market pressure for restructuring.