South Korea¡¯s steel, cement and petrochemical industries are put under caution for credit risk evaluation as they are feeling the pinch of the global recession, according to the nation¡¯s financial watchdog. Such caution means the companies will be subject to strict credit risk evaluation by their creditor banks.
In contrast, semiconductor and display industries were out of the list. The Financial Supervisory Service (FSS) recently added large companies involved in steel, cement and petrochemical business to its list for caution, requesting banks to conduct strict credit risk evaluation.
The list already includes construction, shipping and shipbuilding conglomerates. The request came ahead of the FSS planned
announcement of a list of large companies subject to bank-led restructuring.
Banks should apply detailed criteria to evaluate those vulnerable companies unlike other industries in order to select those to be put under restructuring.
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