Instead of the number of firms in default shrinking, there was a big increase in the number of firms with an interest coverage ratio less than unity owing to the promotion of various emergency support measures including the government’s fast track support for SMEs and increased credit guarantee ceilings.
Since the Korean economy has largely shaken off the influence of the global financial crisis, the drive for the restructuring of firms should in future be carried out in a normal manner at their own initiative based on the market mechanism.