LEAD) S. Korea's conglomerates see net debt rise in 2008

SEOUL, March 23 (Yonhap) -- South Korea's 10 largest business groups saw their net debt rise sharply last year as they sought mergers and acquisitions and spent big on facility expansion, a report showed Monday.

The net debt of the nation's 10 largest conglomerates stood at 36.44 trillion won
(US$26.2 billion) as of the end of last year, compared with 17.63 trillion won a
year earlier, according to the report by Chaebul.com, which provides data on the
country's business conglomerates.
Net debt is calculated as financial liabilities less financial assets.
According to the report, third-largest conglomerate SK Group held the biggest
amount of net debt as of the end of 2008. Net debt of the group, whose interests
range from energy to telecommunications, rose 54.9 percent on-year to reach 17.34
trillion won last year.
The group finalized its energy unit SK Energy Co.'s merger with Inchon Oil
Refinery Co. earlier last year, and took over the country's No.2 internet service
provider Hanaro Telecom Inc., now re-named SK Broadband Co.
Meanwhile, net debt of energy and retail giant GS Group grew at the fastest pace,
822 percent, to 3.17 trillion won. The sharp expansion came as rising oil prices
coupled with a weakening local currency boosted oil-importing bills for the
six-largest group's oil-refining unit GS Caltex Co., unlisted but tallied in the
report.
Largest conglomerate Samsung Group, however, logged bigger cash and liquid assets
than its borrowings last year. The consumer-electronics giant's assets surpassed
its net debt by 8.06 trillion won, compared with a 10.2 trillion won positive gap
a year earlier, the report showed.
pbr@yna.co.kr
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