S.Korean firms cautious to invest amid economic slump
26/11/2008 15:51
South Korean companies affiliated with top 10 business conglomerates have
retained earnings and capital surplus nearly eight times their equity capital,
indicating their reluctance to invest, a trade association said
today.
According to the Korea Listed Companies Association (KLCA), the
average reserve ratio -- sum of retained earnings and capital surpluses over
paid-in capital -- of 64 listed firms posted 787.13 percent at the end of
September, up 67 percentage points from the end of last year.
The association
said the rise in the ratio reflects that companies remained cautious about
capital spending amid ongoing economic recession.
Out of 64 companies, Tae
Kwang Industry Co had the highest reserve ratio of 27,666 percent, followed by
SK Telecom with 27, 110 percent and Lotte Confectionery with 20,534 percent, it
added.
Xinhua
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