14 South Korean state-run firms flagged over ‘risky’ financial status

At least 14 state-run companies in South Korea have been warned over their risky financial status, according to the Ministry of Economy and Finance. Among the 14 state-run firms, nine showed worsened profitability to a certain extent, while five were weak in terms of financial soundness. These include the Korea Electric Power Corp. (Kepco), the Korea Railroad Corp., the Korea National Oil Corp., and the Korea Land & Housing Corp. (LH). Data showed that the 14 firms accounted for 53% of the 350 firms in terms of assets in 2021. Their debt took up 64% of the total. These 14 firms will also be ordered to carry out manpower restructuring to raise efficiency in the operation of their workforces.