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South Korea to overhaul zombie firms by year-end

Staff writer ▼ | October 27, 2015
South Korea's financial regulator will make utmost efforts to complete the restructuring of unprofitable and highly indebted companies within the year to protect any fallout on the economy from their sudden collapse, officials said.
South Korea street
Asia   There are 3,295 zombie companies
The number of "zombie companies," which can't generate enough operating profit to pay taxes and interest payments or require constant bailouts, reached 3,295 as of end-2014, up from 2,698 in 2009, according to recent data compiled by the Bank of Korea.

The portion of such troubled companies increased to 15.2 percent last year from 12.8 percent five years earlier.

According to the officials, the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS), the financial market governing and oversight bodies, have recently decided to wrap up the overhaul of the ailing companies by the end of the year.