LG Card to Show Profit after Two Years of Losses

LG Card Co., Korea's biggest credit-card issuer, said yesterday that it swung to a recurring profit in September for the first time in two years, a swing that should help it trim this year's loss.

The card issuer, which narrowly avoided bankruptcy with a creditor-led bailout in January, expected to earn $17.45-$26.18 million in recurring profit each month in the fourth quarter, the company said in a filing to the Korea Stock Exchange. It did not give a profit figure for September.

In January this year, creditors and major shareholders agreed to a bailout for the cash-strapped card company.

LG Card's creditors, which include the state-run Korea Development Bank, hold about 99 percent of the company's outstanding shares after swapping debt for equity.

LG Card and most of the Korean credit card firms suffered losses in the past few years due to massive Korean consumer debt and subsequent defaults. Korean consumer debt is among the highest in the world.