One third of foreign firms post losses in 2007

SEOUL, Jan. 7 (Yonhap) -- More than one out of three foreign-invested firms in South Korea posted losses in 2007, mainly due to decreased revenues in the manufacturing and financial sectors, government data showed Wednesday.

According to the data provided by the National Tax Service, 35.7 percent of the
nation's 6,489 foreign-invested companies went into the red in 2007, with their
combined losses amounting to 4.66 trillion won (US$3.55 billion). The figure is
down from the previous year's 39.3 percent, the data showed.
South Korea defines foreign-invested companies as being at least 10 percent owned
by foreigners or overseas businesses.
Foreign-invested firms in the manufacturing and financial sectors were hit
hardest. Losses in those areas amounted to 3.47 trillion won and 483.2 billion
won, respectively. Service-sector firms also registered a combined loss of 349.9
billion won.
Of the total number of registered foreign companies, 1,382 were located in the
capital city of Seoul. Its surrounding Gyeonggi Province came in second with 464
foreign businesses, followed by the southern port city of Busan with 104,
according to the data.
kokobj@yna.co.kr