Samsung Claims it Needs a Bigger Debt Ratio to Survive

Samsung's Economic Research Institute on November 18 asserted that the business debt to equity rate should be enlarged from the government mandated 200% to the 240% level which would help businesses pull out of the current economic recession.
The Institute made the recommendation in a report titled 'The Reality of the Economic Depression and an Actual Way of Escape'.
According to the report, the industrial productivity ratio went up 0.3% in September while factories' operational rate also reached 70%. This is a little bit better than early this year but still far below satisfactory.
According to the report's conclusion, the actual economic growth rate might fall to minus 7% by the end of this year together with a sharp reduction in personal income for labor and salaried workers.
It also predicted that Korea will maintain a negative growth rate for at least the next three years.
To overcome the continued crisis, the institute emphasized that the debt ratio should be magnified to the 240% level since even Japan needed more than 15 years to cut down their companies liabilities rate from 350% to around 200%.