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Chaebols make restructuring decisions

LG will lose 21 of its subsidiaries

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The Korean press reported that four of the top chaebols (family concerns) in the country have agreed on how to restructure. LG confirmed that it will shut as many as 21 of its subsidiaries in 18 months time, in an effort to reduce its dept. LG is to concentrate on electronics, telecoms, services, and chemicals, and said it will receive an injection of nearly $7 billion by the end of next year. Hyundai, Samsung and SK also announced their restructuring plans, with Daewoo expected to do the same today. LG has also turned down the heat on the proposed merger of its semiconductor division with Hyundai, and said it would attempt to complete the deal by next week’s deadline. ®

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