Seoul backs dowm from enforcing new curbs on chaebol; reforms would have made conglomerates' finances more transparent and healthier

Article Abstract:

No reforms appear to be forthcoming for South Korea's thriving chaebol business groups, after the administration of Pres. Kim Young Sam retreated from enforcing measures that would have made these conglomerates more transparent and in the long run, more financially sound. A reform proposed by the Fair Trade Commission to force the conglomerates to eliminate cross-guarantees of debt by 2001 has been replaced with a less stringent measure, following lobbying by the chaebols against it. These cross-guarantees lead to mounting debt and intertwined financial structures that could result in major problems if one company defaults.

Business Regulation NEC, Laws, regulations and rules, Economic policy, Commercial law, Industry regulations, Government regulation of business, Trade regulation

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Daewoo seeks debt freeze

Article Abstract:

South Korean conglomerate Daewoo Group has requested for a debt freeze from its foreign creditors in exchange for making $3.35 billion of collateral available to them. Aside from this, the group has also proposed the formation of a coordination committee composed of Korean and international creditors to reschedule Daewoo's debt. However, foreign bankers were skeptical of the offer because they believe that the real value of the offered collateral will prove less than the amount estimated.

South Korea, Japan, Receipt of funds, Planning, Finance, Debt, Daewoo Corp.

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South Korean workers' plight grows dim

Article Abstract:

The growing number of South Korean workers who are not receiving their wages is adding to an increase in labor unrest that may damage the country's chances for economic reform. The Ministry of Labor reported that the amount of unpaid wages increased more than thrice to 457 bil in May 1998 from January 1998, in the wake of companies withholding pay in an effort to endure the country's slowing economy.

Labor Regulation NEC, Employment, Labor law, Labor policy

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