A domestic institute says that debt risks of South Korea’s large companies are growing.
 
The Korea Institute of Finance said in its recent study that of all the firms, the ratio of marginal companies whose interest coverage ratio (ICR) has stood below the 100 percent mark for three straight years is increasing.
 
ICR is the ratio used to determine how easily a company can pay interest on outstanding debt. A reading below 100 percent means a company is not able to fully finance its debt with its profits.
 
Among large companies, the ratio of marginal businesses sharply increased from nine-point-three percent in 2009 to 14-point-eight percent last year, with their debt ratio surging to 231-point-one percent at the end of last year.
 
The institute stressed that proactive and continuous restructuring is needed since low growth has become the new normal and the possibility of recovery of troubled companies has significantly decreased.