South korea: South Korea's financial watchdog said Tuesday it has placed 42 highly indebted conglomerates under closer watch for debt reduction efforts, with Samsung Electronics Co. topping the list for the first time in eight years.

According to Yonhap News Agency, the Financial Supervisory Service (FSS) reported that conglomerates with total borrowings exceeding 2.56 trillion won (US$1.7 billion) from local banks were designated as heavily indebted corporate groups this year. The number of heavily indebted conglomerates is at its highest level since 2014, increasing from 41 a year earlier.

Samsung Electronics rose to the top spot from third place last year, highlighting its significant debt load. Meanwhile, Dongkuk Steel Mill Co., SK Shipping Co., and two others were newly added to the list, while three companies, including E-Land, were removed, noted the FSS.

The outstanding loans of the 42 heavily indebted companies totaled 386.9 trillion won as of last year, marking an increase of 15.1 trillion won, or 4.1 percent, from the previous year. The FSS stated that principal creditor banks will sign restructuring and turnaround agreements with financially vulnerable conglomerates to systematically manage credit risks and regularly assess their financial soundness.