Seoul: The number of firms showing signs of financial distress decreased in 2025 compared to the previous year amid a period of easing monetary policies, data revealed on Wednesday.
According to Yonhap News Agency, the number of financially weak companies was recorded at 221 this year, marking a decrease of nine from the previous year. The data indicated that banks' exposure to these firms amounted to 2.2 trillion won (US$1.48 billion) as of the end of September, which represents 0.1 percent of total corporate loans.
Banks are mandated to allocate an additional 187 billion won in reserves against loans extended to companies facing financial instability. The overall exposure of all financial companies to these firms was reported to be 3.7 trillion won, according to the data.