Bailout-fund initiative leaves analysts doubtful; Seoul's $1.68 Billion bank-rescue effort is said to 'overlook fundamental problems' in sector
Article Abstract:
The government of South Korea unveiled its plan to rescue the banking industry from the financial troubles that beset it. According to the Ministry of Finance and Economy, the rescue plan calls for the government payment of non-performing bank loans that ailing companies cannot pay. The bail-out fund amounting to $1.68 B, will last for five years. It will be funded by financial institutions and will be controlled by the Korea Asset Management Corp. Analysts, however, point out that the solution will be short term and will not address the basic problem of massive bank loans.
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1997
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Banks to force 55 companies to close by curbing loans
Article Abstract:
South Korea's banks will drive 55 firms to shut down by limiting loans to accelerate the country's economic recovery. The targeted companies, which include affiliates of the largest business groups in Japan, will no longer get funding from banks and current loans would not be rolled over. The move is anticipated to compel companies into selling, consolidating or liquidating the operations. Nevertheless, many in Seoul, South Korea, criticized the initiative as inadequate.
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1998
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As Korean banks face market changes, sector's stocks regain luster, value
Article Abstract:
The stock index for the South Korean banking sector increased by 13.2% since its lowest-to-date performance of 527.80 points in Dec. 1995. The recovery of the banking sector has significantly pushed premium prices of over-the-counter stocks. However, analysts warned that the banking industry still needs to tackle its bloated work forces and continue weeding-out bad loans to ensure its complete recovery.
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1996
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