Hanwha and Kia Motors fail to sell assets, fueling fears: frustrated attempts spur concerns that such setbacks may hinder South Korea's recovery

Article Abstract:

The failure of South Korean conglomerates Hanwha Group and Kia Motors Corp. and its subsidiary Asia Motors Co. to sell off its assets has spurred many economic observer to believe that South Korea's economic recovery may take a longer time. Hanwha failed to sell off its power plant operations to US-based AES Corp. due to the demand of AES for guarantees from the government and local financial instutitions regarding payment in the actual operation of the plant. The deal would have amounted to $874 mil, one of the biggest foreign investments in Korea. The same was true for Kia Motors and Asia Motors, where bidders Hyundai Motor Co, Samsung Motor Corp and Daewoo Motor Co sought increases in the debt writeoff of Kia and Asia Motors.

Regulation, Licensing, and Inspection of Miscellaneous Commercial Sectors, Investor Protection & Disclosure, Finance, Disclosure (Securities law), Investor relations, Kia Motors Corp., Hanwha Group

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For a taste of Malaysia's future, take a look at Korea's past

Article Abstract:

Malaysia should learn from South Korea on how and what life would be like under a capital control system. South Korea was one of Asia's restricted markets due to government regulations until the government opened its economy to foreign market in 1992. A number of businesses faced stringent limitations such as high import duties and bureaucratic red tape which severely crippled economic growth. The government also regulated dollar flow into and out of the country through the daily dollar/won trading. South Korea's economy declined after several years of capital control.

Intnl Economic Policy, Evaluation, Malaysia, International economic relations, Capital movements

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Difficult fishing in Korea: bailout, lower share prices are insufficient bait

Article Abstract:

Investors in Korea are still shunning the market despite an International Monetary Fund bailout package and low share prices. Analysts say prices are not low enough and that any exposure to Korea in 1998 would likely be too risky. Even mutual funds are not taking chances and have pulled out all their investments. Foreigners wishing to exit the market make up most of the selling parties.

Economic Programs, Administration of Economic Programs, Foreign Loans-Intnl Agencies, Economic policy, International organizations, Foreign loans

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