Default rate of corporate bills dips in September

The default rate of corporate bills (bonds, checks and promissory notes) in South Korea stood at 0.22 percent in September to record a decline of 0.06 percentage point from 0.28 percent in the previous month, the central bank said Tuesday.

The fall was mainly caused by a decrease in the value of dishonored bills of companies affiliated with STX and Tong Yang Groups, officials at the Bank of Korea (BOK) said.

Those companies' dishonored bills were valued at a combined 150 billion won in September, down 80 billion won a month ago, the officials said.

The default rate of corporate bills in Seoul, the capital, reached 0.18 percent, down 0.07 percentage point from August, compared with 0.44 percent in provincial areas, down 0.04 percentage point from a month ago.

Park Sae-jin swatchsjp@ajunews.com

Default rate of corporate bills dips in September

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