South Korea's Finance Ministry said on Sunday it will make efforts to reduce liabilities in 18 debt-ridden public firms by 2017 in a bid to tighten what has been lax management. Under the plan, the Ministry of Strategy and Finance said the 18 public firms will be required to tighten their belts to curb the debt increase amount to 45.9 trillion won ( $42.8 billion ) from the initial plan for a 85.4 trillion won increase, Yonhap wrote. South Korea's 38 public firms will also reduce the budget for employees' benefits by 22.9 percent, or 160 billion won , with 20 designated organizations required to cut welfare by 37.1 percent. Public companies with high debts are to sell their assets to improve financial health, with Korea Railroad Corp. and Korea Electric Power Corp. offloading their real estate assets and shares to secure 1.9 trillion won and 1.5 trillion won , respectively. The latest moves came in line with the government's "normalization" plan in which it called on public companies to come up with measures to reduce their debts and rectify any "abnormal" management practices.
Most Popular Stories
- Dmytro Firtash, Ukrainian Billionaire, Arrested in Vienna
- Obama, Ukraine Discuss Russian Incursion in Crimea
- Ukraine Moves Closer to Joining E.U.
- Ukraine Loan Delayed While Congress Goes on Vacation
- Herbalife Puts Off Meeting for Icahn Talks
- Calumet Photo Files for Bankruptcy
- Navarro Celebrates 2 Years of Vida Mia
- Federal Gov't Deficit Continues to Decline
- Venezuela Death Toll Reaches 28
- Russia Holds Large Military Drills in South