How Top Five Chaebol Will Restructure Their Subsidiaries

How will the top five chaebol restructure their subsidiaries ?
They plan on mainly selling or merging their subsidiaries by attracting foreign capital.
Hyundai is planning on merging similar industries or businesses into their core industries of electronics, heavy industry, finance and services.
Hyundai which has already drawn 5 billion dollars in foreign investment is planning to attract a further 4.5 billion dollars worth of capital next year by selling a share of its assets.
Samsung will forge a strategic alliance with several world wide multinational companies in the fields of technology and finance and transfer over management authority of its marginal companies to foreign investors if necessary.
Samsung will lower the group's debt to equity ratio to 260 percent late this year then to 190 percent in 1999 and to the 120 percent level in 2002.
Daewoo Group which already agreed to send over management control of Daewoo Electronics to Samsung Group is worried about the dispositions of Daewoo Telecom and Orion Electricity.
Daewoo intends to liquidate roughly 10 companies by selling its equities to foreign or domestic investors.
LG Group will lower its debt to equity ratio from the current 343 percent to 199 percent by late next year by attracting foreign capital more aggressively.
A source at the group said, ' In the case of LG Chemicals, it is trying to sell all its businesses to investors. LG is planning to attract 6.5 billion dollars in foreign capital by next year.'
SK Group plans to introduce 2 billion dollars in foreign capital by next year in the hopes of solving the problem of its mutual repayment guarantees among its subsidiaries by 1999.
SK will try to merge 20 non-core companies by way of M&A or setting up joint companies with foreign companies.