5 Chaebols Agree to Some Restructuring Plans

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5 Chaebols Agree to Some Restructuring Plans

The five biggest chaebols, which have been negotiating concrete measures for restructuring for the past month, have agreed on some businesses' restructuring plans on October 7.
According to these plans, Hyundai Electronic and LG Semiconductor will decide its newly born company's management by the end of November and divide its equities at the ratio of 7 to 3.
In train manufacturing, initially Daewoo and Hanjin Heavy Industries will merge and Hyundai will participate in the merger after initial negotiations are concluded.
But the business sector could not agree on the restructuring plan of two companies, Hankook and Hyundai Heavy Industry.
The petrochemical industry will see Hyundai and Samsung merge operations while airplane production will have Samsung,Daewoo and Hyundai set up a separate company and lower its liabilities ratio to less than 300% by attracting foreign capital.
Son Byung Doo, vice chairman of the Federation of Korean Industries (FKI) said, ' The business sector will complete its restructuring measures by year-end and launch new companies early next year.'
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