CEO Score Survey: Debt Ratios of 353 Companies
62.6% Exceed 100% Debt Ratio
Hyosung Chemical Reports Minus 68 Billion Won in Equity Last Year
Last year, more than 6 out of 10 of Korea's top 500 companies had a debt ratio exceeding 100%. Among the companies surveyed, Hyosung Chemical was the only one to fall into a state of 'complete capital impairment.'
According to CEO Score, a corporate data research institute, on April 30, 2025, a survey of the debt ratios of 353 companies (excluding financial firms) that submitted financial statements among the top 500 companies by sales in 2024 found that 221 companies (62.6%) had a debt ratio exceeding 100%, including those in a state of complete capital impairment.
The debt ratio is an indicator of a company's financial soundness. It is calculated by dividing a company's total liabilities by its total equity. If liabilities exceed equity, the debt ratio increases; however, if equity increases through capital increases, the debt ratio may decrease. A stable debt ratio is considered to be 100% or less.
Among the companies surveyed, Hyosung Chemical was the only one in a state of complete capital impairment. Hyosung Chemical attempted to sell business units to stabilize its finances due to losses caused by a downturn in the market, but financial improvement remains distant. As of last year, the company's total equity was reported at minus 68 billion won.
There were five companies with a debt ratio exceeding 1,000%: Hyosung Chemical (which is in capital impairment), Hansung Motor (2,319.6%), T'way Air (1,798.9%), Samsung Electronics Service (1,520.3%), and Asiana Airlines (1,240.8%). Among them, Hansung Motor saw its debt ratio surge by 1,389.3 percentage points from the previous year (930.3%), marking the largest increase within a year.
Following this, T'way Air (up 1,081.9 percentage points), Samsung Electronics Service (up 453.6 percentage points), Kumho Construction (up 328.6 percentage points), Farmsco (up 242.4 percentage points), and E1 (up 169.5 percentage points) also recorded significant year-on-year increases in their debt ratios.
Distribution company Kurly saw its debt ratio decrease by 9,641.7 percentage points compared to the previous year, the largest decline among the companies surveyed. However, its debt ratio last year still stood at 733.6%, which remains high. This decrease is interpreted as resulting from continuous capital increases that boosted equity, rather than from financial stabilization.
Other companies that saw notable declines in their debt ratios compared to the previous year included Shinsegae Construction (down 742.7 percentage points), CJ CGV (down 529.7 percentage points), Emart24 (down 366.5 percentage points), and Asiana Airlines (down 265.5 percentage points). Taeyoung Construction, which was in a state of capital impairment in 2023, resolved its capital impairment last year with a debt ratio of 720.2%.
By industry, trading companies recorded the largest decrease in debt ratio, falling by 24.0 percentage points year-on-year to 136.0%. A representative example is SK Networks, whose debt ratio dropped from 322.6% to 151.2%.
The debt ratio of public enterprises fell by 23.1 percentage points to 294.3%. Although this was the second-largest decrease, public enterprises still had the highest debt ratio among all industries. Korea Gas Corporation recorded a debt ratio of 432.7%, down 50.0 percentage points from the previous year's 482.7%. The debt ratios of the distribution industry (down 15.6 percentage points), service industry (down 2.5 percentage points), and pharmaceutical industry (down 1.0 percentage point) also decreased year-on-year. In contrast, the debt ratios of shipbuilding·machinery·equipment (up 15.5 percentage points), holding companies (up 12.2 percentage points), transportation (up 10.5 percentage points), steel (up 10.0 percentage points), and petrochemicals (up 5.7 percentage points) increased compared to the previous year.
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