Number of S. Korean firms with financial distress down in 2025

Seoul, Dec 17 The number of firms with signs of financial distress declined in 2025 from a year earlier amid an easing monetary cycle, data showed on Wednesday.

According to the data from the Financial Supervisory Service (FSS), the number of financially weak companies stood at 221 this year, down nine from a year earlier, reports Yonhap news agency.

The data showed that banks' exposure to those firms stood at 2.2 trillion won ($1.48 billion) as of end-September, accounting for 0.1 per cent of total corporate loans.

Banks are required to set aside an additional 187 billion won in reserve against loans extended to financially shaky firms.

All financial companies' exposure to them came in at 3.7 trillion won, according to the data.

Meanwhile, South Korean stocks were trading slightly higher late Wednesday morning as investors went bargain hunting for tech and semiconductors.

The benchmark Korea Composite Stock Price Index (KOSPI) rose 24.19 points, or 0.6 per cent, to 4,023.32 as of 11:20 a.m.

The KOSPI bounced back to the 4,000 mark after closing at a nine-day low the previous session amid concerns over artificial intelligence (AI) sector valuations.

Overnight, U.S. stocks closed mixed, as investors tried to digest November labor market data, where job numbers increased, but the country's employment rate rose to its highest level in four years.

The S&P 500 fell 0.24 percent, while the tech-heavy Nasdaq inched up 0.23 per cent.

In Seoul, large cap shares were trading mixed.

Market top-cap Samsung Electronics rose 2.72 per cent, while its chipmaking rival SK hynix slid 0.94 per cent.

Top carmaker Hyundai Motor stayed flat, defense giant Hanwha Aerospace advanced 1.71 per cent, and portal operator Naver dipped 0.43 per cent.

The Korean won was quoted at 1,480.7 won against the dollar as of 11:20 a.m., down 3.7 won from the previous session's close.

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