Plans for Hyundai, Daewoo units lack long-term focus; move to assist troubled trusts is contrary to government's call not to support weaker units
Article Abstract:
Two Korean chaebol will bail out affiliated investment trusts in a move that is expected to boost other financial sectors but also indicates a lack of commitment to a government economic plan which calls for conglomerates not to finance weak affiliates in different lines of business. Hyundai Investment Trust and Securities Co., Daewoo Securities Co. and other investment trusts are discussed.
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 2000
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Seoul may boost trust firms
Article Abstract:
The South Korean government is considering the infusion of public capital to investment trust companies in an effort to stabilize its stock market. The measure, which is being studied by the Financial Supervisory Service, is aimed at reassuring investors of the Daewoo Group affiliates' bonds. The problems of the South Korean stock market is directly linked to the performance of the Daewoo Group, South Korea's second-biggest conglomerate that narrowly escaped bankruptcy in mid-Jul 1999.
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1999
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Seoul taps brokers to help absorb Daewoo's bad debt
Article Abstract:
South Korea's government has ordered its brokerage firms and investment-trust firms to shoulder their share of the bond losses of the Daewoo Group as part of a government effort to calm the stock markets. The move aims to protect Korea's small investors and instead, transfer the weight of Daewoo's collapse on the brokerages. The country's Financial Supervisory Service said that the brokerages and trust firms bear a responsibility of absorbing bond losses because they actively advertised and sold funds with Daewoo bonds.
Publication Name: The Asian Wall Street Journal Weekly
Subject: Business, international
ISSN: 0191-0132
Year: 1999
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Comment about this article or add new information about this topic:
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