Resolution by Direct Governmental Intervention

The government encouraged creditors to resolve the problems surrounding large corporations such as Hyundai Investments, Hi-Nix Semiconductors, and Dae Woo Auto, which suffer from corporate demise, and announced its intention to directly involve itself in case further problems arise in resolving the crisis.

Vice Chairman and Minister of Finance and Economic Committee, Chin Nyum, announced on August 8, ``Creditor banks will help settle the problem of the several companies engaged in deals with foreign countries, and in the case that they don’t, the government will step in.``

Vice Chairman Chin announced this at the annual press conference and said, ``There will be criticism no matter how we handle the situation, but we will accept the cost and take responsibility for resolving these problems.``

``We will announce by August 14 the review of the creditor banks` handling of the 35 workout corporations (Project for Corporate Improvement) led by the Director of Finances,`` said Chin. He added, ``Corporations that can move on will do so and those that can’t survive will be sold.``

The Ministry of Finance chairman Lee Kun Young also held an annual press conference where he stated, ``Even if the sale of Hyundai Investments gets delayed, it will happen within a week.``

Lee also said, ``We plan to start examining the Regular Corporation Review System beginning on the 10th.`` He added, ``Measures geared toward resolving the problem of companies on the review list due to possible failure in confidence will be announced earlier than the projected September deadline.``

Lee stated further that ``we plan to have everything done, especially on issues such as withdrawal, sale, and resuscitation of the 35 workout corporations, by the end of August.``

On the recent projections about bank mergers, Lee commented, ``We`ve perceived the situation but have not heard that Hanmi Bank is involved in a merger.``

Park Joong-Hyun sanjuck@donga.com