A total of 19 large companies whose business performance has worsened will undergo restructuring.
 
The Financial Supervisory Service announced on Wednesday that it made the selection after conducting credit risk evaluations of 368 companies with more than 50 billion won of debt from financial institutions.
 
The agency rated eleven companies as C and eight as D.
 
C-rated companies are required to make debt workout agreements with creditors to improve their financial structure and work toward management normalization.
 
D-rated companies will not be eligible for support from creditors. The companies will have the freedom to normalize their financial structures with their own assets but are more likely to apply for court receivership.
 
Among the 19 businesses, three are in the steel industry and two are shipbuilders.
 
The 19 companies have total borrowings of 12-and-a-half trillion won.
 
When adding the 35 companies that were subject to restructuring earlier in June, a total of 54 large firms have been listed for restructuring this year. That’s up 58 percent from last year.