Business Groups to Shed 195 CompaniesAlthough the top-five chaebol dominate the headlines and their sheer size alone affects the country in a significant way, the nation's other business groups are also busy restructuring. Based on total assets, among the 6th to 64th ranked groups, which are now conducting their corporate recovery, 195 of their companies will be abolished.
According to the Financial Supervisory Office(FSO) on February 18, the groups decided to abolish 195 companies among their 248 total number of subsidiaries (about 78.6 percent) by way of sale, liquidation or through mergers and acquisition.
The breakdown of the companies' disposal is as follows: the number of outright sales will be the largest at 80, or 41 percent; 47 companies, 24.1 percent in total, will be liquidated; 43 companies, 22.1 percent, will undergo a merger; and 25 companies, 12.8 percent, will be under court management or management by creditor banks. The groups have already liquidated 46 companies, so only one more is currently slated for the scrap heap.
Among the 53 companies that will be revitalized, the groups nominated 39 companies for 'work-out' programs and decided to directly revive 14 companies.
A source at the FSO stated, 'The groups are showing their commitment to restructuring their subsidiaries, selling off or liquidating 127 companies is a significant number.
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