Seoul, April 20 (QNA) - The state-run Korea National Oil Corp. (KNOC) lapsed into a complete capital erosion in 2020 as its liabilities stood at 18.64 trillion won ($16.7 billion) as of the end of last year, up nearly 514 billion won from a year earlier, due to continued losses, data showed Tuesday.
In contrast, its assets amounted to 17.5 trillion won, down 1.12 trillion won from the previous year, according to the Korean data posted on the state portal All Public Information in One (ALIO).
It marks the first time since the state oil company's inception in 1979 that it has suffered from full-scale capital erosion, according to South Korea's Yonhap News Agency.
The ratio of KNOC's interest-bearing debt to total assets came to 83% as of end-December. The firm's interest bearing debt reached 14.7 trillion won last year, with its annual interest burden surpassing 400 billion won.
To pull out of the huge debt burden, the KNOC has been ramping up self-rescue efforts, including the sale of unprofitable subsidiaries and subprime overseas assets, as well as layoffs.
Yet industry watchers said it will be difficult for the KNOC to solve its debt problem over the short term as its liabilities are expected to reach 20 trillion won in 2024. (QNA)