Loan guarantees among affiliates of Korea’s top 30 business groups exceeded 60 trillion won (US$56 billion) in 2017, a market tracker said on March 7.
The amount of debt payment guarantees among units of the leading conglomerates came to 62.6 trillion won last year, or 6.3 percent of their combined equity capital worth 1,055 trillion won, according to CEO Score.
Loan guarantees made to overseas affiliates stood at 58.9 trillion won, accounting for slightly over 94 percent of the total.
Hyosung was the only conglomerate whose loan guarantee-to-equity ratio topped the 50 percent mark. The group’s inter-affiliate loan guarantees reached 2.69 trillion won, or 52 percent of its equity capital, with those to overseas units reaching 2.43 trillion won.
Samsung Group’s loan guarantees to overseas units was the largest at 14.49 trillion won, or 5 percent of the conglomerate’s equity capital.
By Song Seung-hyun and newswires (email@example.com