Listed firms see reserve ratio rise in 2008

SEOUL, April 15 (Yonhap) -- The reserve ratio of listed South Korean firms
climbed last year from a year earlier as companies tried to boost liquidity amid
an economic downturn, the bourse operator said Wednesday.

The reserve ratio of 552 listed firms stood at 696.97 percent as of the end of
December last year, up 27.49 percentage points from a year earlier, the Korea
Exchange (KRX) said in a statement.
The reserve ratio, or capital surpluses and retained earnings divided by paid-in
capital, measures how much cash a company has at a given time.
"The rate rose last year as listed firms curtailed spending and increased cash
holdings in order to brace for an economic slowdown," a KRX official said.
The companies had 391.4 trillion won (US$292.4 billion) in total capital
surpluses and retained earnings last year, up 5.6 percent from a year earlier,
with their combined paid-in capital rising 1.4 percent to 56.2 trillion won,
according to the KRX.
pbr@yna.co.kr
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