There are many forecasts that a number of industries which would face difficulty in repaying debts due to deterioration in profitability would increase sharply in 2016.
These outlooks are based on the analysis that the display, banking, and hotel industries could face a crisis due to the Chinese economy’s slowdown and the prolonged domestic economic recession.
Korea Investor Services, one of Korea’s leading credit rating agencies, announced on December 23 that 10 out of 22 surveyed industries would face unfavorable business environment in 2016.
In addition to existing long-term vulnerable industries, including construction, shipbuilding, steel, shipping, securities, and lease finance, KIS classified the industries of display, banking, credit card, and hotel as those that would face difficult business conditions next year.
The number of industries which are expected to enjoy better business conditions in 2016 was limited to two, namely airlines and oil refiners that may benefit from the recent decline in oil prices.
