{
  "id": 9104919,
  "title": "Chip boom masks Korea's growing zombie firm problem",
  "url": "https://urgent.news/2026/09/22/chip-boom-masks-koreas-growing-zombie-firm-problem",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-22T07:37:03.000Z",
  "source": {
    "name": "The Korea Times",
    "slug": "the-korea-times",
    "url": "https://www.koreatimes.co.kr/economy/20260922/chip-boom-masks-koreas-growing-zombie-firm-problem"
  },
  "original_language": "en",
  "account": "Korea's chip industry is booming, but the country is grappling with a growing problem of \"zombie\" firms, according to the Bank of Korea (BOK). The semiconductor sector has driven a sharp increase in nominal GDP, with Q2 2025 seeing a 26.4 percent jump from the previous year. However, this success is not evenly distributed across the economy. As of December 2024, 19.1 percent of non-financial companies were classified as zombie firms, up from 17.1 percent in the prior year and the highest level since 2010. A zombie firm is one that cannot generate enough operating profits to cover its interest expenses for three consecutive years. This issue affects both large and small to medium-sized enterprises.",
  "summary": "Korea’s semiconductor boom is producing extraordinary headline growth, but its benefits are not being felt evenly across the economy. While strong chip exports have pushed nominal gross domestic product (GDP) sharply higher, the share of “zombie” companies has climbed to a record, the Bank of Korea (BOK) said Tuesday. The country’s nominal GDP has accelerated since the second half of 2025, fueled…",
  "key_points": [
    "Korea's chip industry booms, driving 26.4% Q2 2025 GDP growth",
    "19.1% of non-financial firms classified as zombie in Dec 2024",
    "Zombie firm issue affects both large and SMEs since 2010"
  ],
  "editors_take": "Rising zombie firms undermine the health of Korea's economy, even as the chip industry drives growth, indicating a widening gap in corporate profitability that threatens overall stability.",
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "The Korea Times",
        "title": "Chip boom masks Korea's growing zombie firm problem",
        "url": "https://urgent.news/2026/09/22/chip-boom-masks-koreas-growing-zombie-firm-problem-9106941",
        "published": "2026-09-22T07:52:03.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}