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[Graphic News] Manufacturing sector has most indebted companies

April 24, 2016 - 18:22 By Korea Herald

More than half of heavily indebted companies that fail to generate enough earnings to make interest payments come from manufacturing industries, which have led job creation in Korea.

According to a report by the Korea Employment Information Service, 52.2 percent of 17,841 companies with an interest-coverage ratio failing to reach 1 for a third consecutive year during the period of 2005-2014 were manufacturers.

An ICR below 1 means the firm‘s earnings are insufficient to make interest payments.

Within the manufacturing industry, the display sector had the largest proportion of companies with ICRs below 1 for more than three consecutive years, which stood at 31.9 percent. Next came the semiconductors with 23.7 percent, home appliances with 19.1 percent and steelmaking with 17.2 percent.