5 Biggest Chaebols Reach Tentative Plan on Restructuring

The five biggest chaebols, which had been meeting to decide how best to restructure the operations and management of their companies, concluded talks and submitted tentative proposals on October 1 to their creditor banks.
According to the provisional plan, Hyundai Petrochemical Co. and Samsung Chemical Co. agreed to set up a new joint firm and will decide the management composition based on their performances on attracting foreign capital and on the condition that both companies initially have the same equity stake.
In the case of semiconductor and power generation facilities, the Federation of Korean Industries, the institute which represents the chaebols' interest, would decide managing authority by consulting external experts who will evaluate their exact assets and liabilities.
Petrochemical, aircraft, trains and ship engines manufacturing industries, and related companies have decided to set up new firms and make their own self-reliance plans.
The big five also decided to end evaluating the related companies' exact assets by the end of November and complete their restructuring by year- end by establishing new companies by the end of December.
Meanwhile, creditor banks will decide their level of financial support toward the 'big five' by mid-October after they check the chaebols restructuring plans.