Business Groups May Not Resolve Debt Ratio

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Business Groups May Not Resolve Debt Ratio

Business sectors are not sure whether they can reduce their debt equity ratio below the 200% level by the end of next year. This goes exactly against the government's request, and it might precipitate government action towards the big business groups by way of the banks.
The Korea Business Institute, October 13, announced that at least 46 billion dollars but possibly as high as 137 billion dollars will be needed to lower the debt ratio to the 200% level for enterprises.
In light of the recent economic recession, this kind of funding is almost impossible to draw, the institute predicted.
The alternative proposal could be to sell-off trade and construction companies or omit some liabilities in when the asset evaluation is calculated.
The chaebols are going to issue a report called 'The current economic problems and their solutions' to the government.
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