South Korean: In 2025, fewer companies will be in financial difficulties

Amid an easing monetary cycle, the number of businesses exhibiting financial distress decreased in 2025 compared to a year prior, according to data released on Wednesday.

According to statistics from the Financial Supervisory Service (FSS), there were 221 financially troubled businesses this year, a decrease of nine from the previous year, according to Yonhap news agency.

According to the statistics, as of the end of September, banks’ exposure to such companies was 2.2 trillion won ($1.48 billion), or 0.1% of all corporate loans.

An extra 187 billion won must be kept aside by banks as a reserve against loans made to financially unstable businesses.

The statistics showed that the total amount of money that all financial businesses were exposed to was 3.7 trillion won.

As investors hunted for deals on semiconductors and technology, South Korean equities were trading little higher late on Wednesday morning.

At 11:20 a.m., the benchmark Korea Composite Stock Price Index (KOSPI) increased 24.19 points, or 0.6%, to 4,023.32.

Amid worries over the valuations of the artificial intelligence (AI) industry, the KOSPI closed at a nine-day low the previous day before rising back to the 4,000 level.

As investors attempted to process November labor market statistics, which showed that although job numbers climbed, the nation’s employment rate reached its highest level in four years, U.S. markets finished mixed overnight.

The tech-heavy Nasdaq edged up 0.23 percent, while the S&P 500 lost 0.24 percent.

Large-cap stocks were trading in a range in Seoul.

Market leader Samsung Electronics had a 2.72 percent increase, while competitor SK Hynix, which makes chips, saw a 0.94 percent decline.

Leading automaker Hyundai Motor remained unchanged, military behemoth Hanwha Aerospace had a 1.71 percent increase, while portal operator Naver saw a 0.43 percent decline.

As of 11:20 a.m., the Korean won was trading at 1,480.7 won vs the US dollar, down 3.7 won from the conclusion of the previous session.