S Korea to strengthen monitoring of large firms' financial status

Special Report:Global Financial Crisis

SEOUL, Feb. 5 (Chinese media) -- The South Korean government plans to reinforce

its monitoring efforts on large companies' financial status as the slow-down in

economy affects their business conditions, the financial watchdog said Thursday.

According to the report of the Financial Supervisory Service (FSS) to the

ruling party, the watchdog informed local banks to assess the financial status

of 44 conglomerates and to report the results to the FSS on a quarterly basis.

"If large companies' financial health deteriorates, the watchdog is

considering urging local banks to check their credit risks," said Kim

Jong-chang, governor of the FSS.

Many local smaller companies are going through liquidity squeeze due to the

global economic recession and the credit crunch, South Korea's Yonhap News

Agency said.

Experts warned that large companies are in danger of facing a similar

squeeze due to declining exports and domestic demand, Yonhap said.