Gov"t & IMF Agree to Accelerate Restructuring

The government and the International Monetary Fund (IMF) concluded that they will accelerate restructuring through financial instruments.
The government accepted the delay of the sale of both Seoul and Korea First Bank sales until January 1999, but it shortened the deadline of companies' repayment, instead.
Banks which are reluctant to perform restructuring cannot gain access to public funds. The government also plans to heighten the sound assets criteria of insurance, investment, trust, and securities companies in 1999.
The IMF will vigorously and thoroughly check the restructuring of the five biggest chaebols. It plans to examine financial improvement plans, the 'Big Deal', abolishment of mutual guarantees between companies, and any additional agreements. State-owned banks will be sold as soon as the market improves. However, in the interim the government will intervene but rather preserve an autonomous management.