Creditor Banks of Five Chaebols Notified Which Companies Will Be Shutdown

The creditor banks of the five biggest chaebols have chosen the companies to be shutdown. Four to six companies per chaebol will be closed, the Financial Supervisory Committee (FSC) was notified on September 30.
The list was not made public, though, because the announcement may affect the normal operations of the related companies.
The FSC will finally decide which companies will be shutdown, through consultation with the main creditor banks of the five chaebols. The creditor banks plan to suspend all new loans for the companies targeted from now on. But if some creditor banks oppose the shutdowns of some companies, there is a possibility that the list will be changed. The main creditor banks had already notified each chaebol which companies should be shut down.
The FSC approved the various methods of dispositions for failing businesses including liquidation or sale and acquisition by other companies.
In related news, the business sector and the Federation of Korean Industries (FKI) are continuing on September 30 consultations on the seven industries' restructuring. Participants have agreed that decisions and recommendations should be finalized by October 1.
They initially agreed that if Hyundai Electronics and LG Semiconductor cannot conclude their management issue in their proposed semiconductor merger, the main creditor banks for the two companies would decide the management board instead.