Five Biggest Chaebols to Scale Down Businesses By 40%

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Five Biggest Chaebols to Scale Down Businesses By 40%

The five biggest chaebols will scale down their business holdings by as much as 40%.
Samsung group recently submitted to its main creditor bank, Hanil Bank, its additional restructuring plan which stated it would diminish its current 61 subsidiaries to less than 40 and lower its liability ratio to as little as 200%.
Samsung will mainly focus on five industrial areas: electronics, petrochemical, shipbuilding, machinery and services including finance.
LG Group will diminish its current 52 subsidiaries to 25~30 and focus on the following five industries: chemical, electronics, semiconductors, telecommunications and finance.
Hyundai group also submitted to the Korea Exchange Bank its plan to decrease its now 62 subsidiaries to 35 by the year 2000 and lower its liability ratio to less than 200% by the end of next year. Hyundai, too, will focus on five core industries: automobiles, construction, chemical, electronics and services including finance.
In addition, Daewoo and SK groups will also shut down 30-40% of their subsidiaries.
A source from the Financial Supervisory Commission said, 'Creditor banks for the big five will scrutinize the chaebols' additional restructuring plans and make a final decision.'
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