[2021 Performance Summary] KOSPI Debt Ratio 115.6%... Asiana & Lotte Gwangwang Development Debt Ratio Exceeds 2000%

[Asia Economy Reporter Minji Lee] Among major KOSPI-listed companies, Asiana Airlines and Lotte Tour Development have debt ratios exceeding 2000%. The overall consolidated debt ratio of KOSPI-listed companies was 115.92%, showing a slight decrease compared to last year.

According to the 'FY21 Financial Results' of December fiscal year-end corporations in the securities market announced by the Korea Exchange on the 4th, Asiana Airlines recorded the highest debt ratio among KOSPI December fiscal year-end listed companies (595 consolidated companies). Its overall debt ratio was 2410.60%, an increase of 1239.05 percentage points compared to the previous year. It is analyzed that financial soundness further deteriorated due to foreign exchange losses caused by the rise in exchange rates and provisions set aside for unpaid corporate taxes. Airlines require dollars to pay aircraft lease fees and aviation fuel, so when exchange rates rise, costs inevitably increase.

The next highest debt ratio was recorded by Lotte Tour Development. Its debt ratio, which was 430% at the end of 2020, increased by 1941.92 percentage points to 2371.97%. Following this were T'way Air at 1452% and CJ CGV at 1156%. It is estimated that the financial structure worsened due to restrictions on major businesses such as hotels, casinos, passenger transportation, and movie theaters caused by the spread of COVID-19.

On the other hand, the company with the lowest debt ratio was Ewha Industrial, recording 17.67%. This is a decrease of 44.72 percentage points compared to 62.4% at the end of 2020. It was followed by Dongil Industrial (17.84%), Woojin INS (18.09%), UNGEL (18.22%), Lock&Lock (19.57%), Iljin Dia (19.94%), and Shin Young Wacoal (20.36%).

Meanwhile, the consolidated debt ratio of KOSPI-listed corporations for last year was 115.92%, a decrease of 1.49 percentage points compared to the end of 2020. Total consolidated sales increased by 19.82% year-on-year to 2,299 trillion KRW, and operating profit and net profit rose by 73.6% and 160.56%, respectively, recording 18.39668 trillion KRW and 15.65693 trillion KRW.