Corporate restructuring was the main culprit behind a drop of 40 percent in Korean banks business performances last year. Financial regulators explained that bad account cost from the restructuring of shipbuilders such as STX Shipbuilding weakened banks profitability last year.
Last year, Korean banks posted 3.5 trillion won in net income, a drop of 42.6 percent from a year before. In particular, with the rehabilitation procedure of Kyeangnam Enterprises and the workouts of POSCO Plantec and Donga One as well as the losses of the shipbuilding industry affecting banks business results, banks bad account cost swelled to 11.7 trillion won, up 2.5 trillion won from a year before.
Whats the matter is that the massive restructuring of large …
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