South Korea’s corporate capability to pay interest cost worsens

21 June, 2019 12:00 AM printer

SEOUL: South Korea's corporate capability to pay interest cost with operating profit worsened in 2018 on economic slowdown, a central bank report showed Thursday.

The average ratio of operating profit to interest cost among 21,213 companies subject to external audit came in at 5.9 last year, down from 6.3 in the previous year, according to the Bank of Korea (BOK), reports Xinhua.

It was attributed to the economic slump. Real gross domestic product (GDP), adjusted for inflation, grew 2.7 percent in 2018 from a year earlier, marking the lowest in six years.