23 firms to be released from workout program

Of the 69 firms currently under workout programs, the government has decided to release 23, including Byucksan, Tongyang Moolsan, Youngchang and Muhak, by the end of next month. The Financial Supervisory Commission (FSC) also reaffirmed that it would apply stricter standards in creditor banks¡¯ evaluations of a firm`s viability than ever before.

FSC Chairman Lee Yong-Keun reported these developments to the National Policy Committee Monday.

"According to the policy for the early retirement of 32 workout firms, which was announced in May, workout arrangements for nine firms, including Taegu Department Store, Debec Shopping and Anam Semicon, have been completed. The workout programs for the remaining 23 firms will wrap up by the end of August," said Lee.

The government plans to have only 46 firms, including 12 affiliated firms of the ailing Daewoo Group, remaining under the workout arrangement after August.