There is a warning sign for corporate insolvency in the Korean economy. The number of marginal companies pushed to the brink of restructuring has increased compared to the global financial crisis and the COVID-19 pandemic. According to the data released by KB Kookmin, Shinhan, Hana, and Woori to the National Federation of Banks, a total of 2,339 companies were classified as “companies that are likely to become insolvent” (grade B) at the end of last year. The figure jumped 24% from 1887 in the previous year, the highest in history.
You can ask if it’s a B grade or not, but it’s not. This is because the “Corporate Credit Risk Assessment” conducted by banks to give…
