South Korea ’ s three leading steelmakers , including POSCO , Hyundai Steel and Dongkuk Steel Mill , improved their financial stability last year . The companies ’ debt ratios , one of major indicators for financial health , improved as the stronger Korean won increased the conversion value of won - denominated assets and their efforts for restructuring paid off even as operating profits ( OP ) plunged amid an unprecedented downturn last year . POSCO posted an OP worth 2 . 79 trillion won ( $ 2 . 57 billion ) last year on a stand - alone basis , down 35 . 6 percent on - year , said sources in the steel industry Monday . The company ’ s annual OP fell below three trillion won for the first time in 10 years since 2002 . But POSCO ’ s debt ratio dropped 6 . 6 percentage points on - year to 33 . 6 percent . The debt ratio fell because the steelmaker continuously enhanced its financial health , the stronger won increased the conversion value of won - denominated assets , and the weaker Japanese yen has cut the value of yen - denominated debt . POSCO is forecast to further reduce its debt ratio if the industry emerges from the downturn as its headquarters office does not plan to increase debt and keep paying back existing debt this year . The nation ’ s second largest company , Hyundai Steel , recorded an OP totaling 870 . 7 billion won last year , down 31 . 9 percent on - year . But its debt ratio declined 5 . 2 percentage points to 133 . 4 percent from 138 . 6 percent last year . “ Our net profit jumped 7 . 6 percent on - year as the appreciation of the won boosted conversion value of won - denominated assets last year , ” said an official at Hyundai Steel . “ In contrast , our total debts remained almost unchanged , resulting in a reduced debt ratio . ” Dongkuk Steel Mill recorded 115 billion won in OP last year , but the steelmaker ’ s debt ratio dropped 3 . 9 percentage points to 173 . 7 percent from 177 . 6 percent . The debt ratio had been on the rise every year since 2009 , and then swung to contraction last year . The enhanced debt ratios of the three companies are not necessarily good news . The numbers indicate “ the steelmakers cut their expenses amid the recession , which also means they did not make an investment , ” said a source in the industry . [ Written by Jae - man Koh - Sun - ah Kim / edited by Soyoung Chung ] [ ⓒ Maeil Business Newspaper & mk . co . kr , All rights reserved ]