Restructuring Pressure Increases for 5 Major Chaebols

More pressure is being applied to the five major business groups to increase restructuring efforts.
The Fair Trade Commission(FTC)will start investigating the three companies from each group which received debt guarantees from their parent conglomerate to ascertain whether they violated fair trade regulations.
Furthermore there will be more rigorous and continuous probes on inside trading between the five groups.
Chun Yoon Chul, the FTC's head, in a November 17 interview said, 'The five biggest groups turned out to have supported their subsidiaries through sneaky bond issues and compensating their capital funds. It is not justifiable.'
The FTC will reqire those companies to present a blueprint of their solvency plan in 3 months time which was originally to be done by March 2000.
The business groups to be investigated are Hyundai Electronics and Heavy Industries, Samsung Electronics and Devices, Daewoo Automobiles, LG Chemical and Telecommunications, and SK Chemical.