Public firms tipped to report 3 tln won in losses over coronavirus

SEJONG, Sept. 1 (Yonhap) -- South Korea's major public firms are expected to report a combined net loss of 3 trillion won (US$2.5 billion) this year, as the coronavirus pandemic hit their earnings, the finance ministry said Tuesday.

The 39 public firms, however, are expected to return to the black in 2021 with a combined net profit of 5.2 trillion won, the Ministry of Economy and Finance said in a statement.

The combined debt of the public firms is expected to reach 521 trillion won by the end of this year, up 24.4 trillion won from a year ago.

Their debt-to-capital ratio is expected to stand at 172.2 percent at the end of this year, compared with 167.1 percent a year ago.

After peaking at 173 percent in 2022, the debt ratio is expected to fall to 171.4 percent in 2024, the ministry said.

Last year, the Korea Electric Power Corp., the country's power monopoly, reported the first loss in 11 years, due mainly to weaker electricity sales coupled with increased financial costs.

Its total debt amounted to 128.8 trillion won last year, up 14.6 trillion won from a year ago.

kdh@yna.co.kr
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