34 Percent of Company Stock Is Graded As a Speculative Buying

It is reported that the 34 percent of company stock, totaling 36 trillion and 359.4 billion Won, managed by 28 domestic Investment and trust companies are improper for investment or under BB+ company stock, which needs a special care for investment.

According to the report submitted Um Hoo-Sung(the Grand National Party) on the 24th by the Financial Supervisory Service, company stock managed by domestic Investment and Trust companies can be graded as following: ▼ Above A- grade: 47.6 percent(17trillion and 310 billion Won), ▼ BBB : 18.4 percent (6 trillion and 704.6 billion Won ▼ Below BB+ : 34 percent ( 12 trillion and 344.7 billion Won).

The number of the companies who have more than 50 percent of its stock of under BB+ grade were as much as 4. And 5 companies had more than 40 percent of its stock under BB+. It is reported that D Company and H company who got public funds from government has 45. 7 percent ( 2 trillion and 347 billion Won) and 35.4 percent ( 1 trillion and 481.2 billion Won) of stock as under BB+ grade.

Member of National Assembly Um said, `` if the grade does not go up until the end of this year, customers who put their money for 13 trillion and 500 billion Won of company stock can get disadvantage from it.``

Kim Jeong-Hun jnghn@donga.com