SEOUL, KOREA - The aggregate debt assumed by 379 public enterprises owned and operated by regional or local autonomous bodies turned out in excess of 70 trillion won. Some public enterprises including the seven subway management corporations have fallen into a state of capital impairment and failed to make interest payments.
According to a report "Assessment on the Finance of Regional Public Enterprises" published by the National Assembly Budget Office on April 25, the volume of debt held by 379 local government-run enterprises was 69.1 trillion won as of the end of 2011. This is a 45-percent increase from the end of 2008 when the figure was 47.8 trillion won. The number of regional and local public corporations has steadily risen to 388 in 2012 from 272 in 2000 and 379 in 2011.
The seven subway corporations including Seoul Metro, Seoul Metropolitan Rapid Transit Corp., and Busan Transportation Corp. have suffered serious financial difficulties with the ratio of capital impairment exceeding 40 percent as of the end of 2011.
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