Plans for Hyundai, Daewoo units lack long-term focus; move to assist troubled trusts is contrary to government's call not to support weaker units

Article Abstract:

Two Korean chaebol will bail out affiliated investment trusts in a move that is expected to boost other financial sectors but also indicates a lack of commitment to a government economic plan which calls for conglomerates not to finance weak affiliates in different lines of business. Hyundai Investment Trust and Securities Co., Daewoo Securities Co. and other investment trusts are discussed.

Securities Dealers, Investment Banking and Securities Dealing, Government regulation (cont), Market information - general, Receipt of funds, Management, Securities industry, Korea, Hyundai Investment Trust and Securities Co., Daewoo Securities Company Ltd., Korea Development Bank, Seoul Investment Trust Management Co., Hyundai Corp.

---

Seoul may boost trust firms

Article Abstract:

The South Korean government is considering the infusion of public capital to investment trust companies in an effort to stabilize its stock market. The measure, which is being studied by the Financial Supervisory Service, is aimed at reassuring investors of the Daewoo Group affiliates' bonds. The problems of the South Korean stock market is directly linked to the performance of the Daewoo Group, South Korea's second-biggest conglomerate that narrowly escaped bankruptcy in mid-Jul 1999.

Securities and Commodity Exchanges, Administration of General Economic Programs, Securities Exchanges, Services information, Business Aid Programs NEC, Exchanges, Securities, Business assistance

---

Seoul taps brokers to help absorb Daewoo's bad debt

Article Abstract:

South Korea's government has ordered its brokerage firms and investment-trust firms to shoulder their share of the bond losses of the Daewoo Group as part of a government effort to calm the stock markets. The move aims to protect Korea's small investors and instead, transfer the weight of Daewoo's collapse on the brokerages. The country's Financial Supervisory Service said that the brokerages and trust firms bear a responsibility of absorbing bond losses because they actively advertised and sold funds with Daewoo bonds.

Securities Brokerage, Stock Brokerage, Conglomerate corporations, Laws, regulations and rules, Stockbrokers, Daewoo Corp., Bad debts

Similar abstracts:

• Abstracts: Model for the 'New Economy'; Softbank Group allowed to negotiate on NCB. (Japan's financial regulators allow Softbank Corp.'s bid for Nippon Credit Bank Ltd.)
• Abstracts: Vivendi aims to change statutes of company to curb voting rights. Vivendi plans to list shares in New York
• Abstracts: Spanish banks become major global players; BBVA-Compass deal is just the latest; target - U.S. market. Fortis acquires remaining stake in Beta Capital
• Abstracts: Salomon grabs top slot in Euro debt issuance; Newly muscular staff helps win bond battle. Making the case for growth
• Abstracts: Smaller funds outperform bigger rivals: Middle Kingdom rules Asia with 73% return in past quarter. Some Asia fund investors are thinking big

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.