Debts of State-Run Firms Soar in Fiscal 2006

The debts of South Korea's state-run companies rose 20 percent last year from a year erlier, an indication of their worsening financial stability, a local Web site showed Sunday.

The combined liabilities of 24 state-run companies reached 118.9 trillion won ($127.9 billion) as of the end of fiscal 2006, up 20 percent from 99.1 trillion won a year earlier, according to

Alio, a state-run Web site that deals with information on public institutions.

Sixteen companies saw their debts rise, the site showed.

Incheon Port Authority posted the highest year-on-year increase in liabilities of 526 percent to 24.1 billion won, while Korea Appraisal Board experienced a 70 percent increase in its

liabilities to 293.9 billion won.

The debt of Korea Land Corp. rose 57 percent to 19.5 trillion won, while that of Korea District Heating Corp. advanced 49 percent to 1.04 trillion won.

Six companies, including Korea Minting & Security Printing Corp., saw their debts decline, the site said.