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Bankruptcy of large firms and exit mechanisms in Korea

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Frame of Image ny economic problems in Korea. In fact, it would be difficult to deny that the bailouts of large firms that had gone on for several years on a large scale played a crucial role in bringing about the recent economic crisis, from which Korea has yet to recover completely. In retrospect, exit mechanisms have rarely worked smoothly for large chaebol firms in Korea. Before the Kim Yong Sam administration, virtually all bankruptcy cases involving large firms had been handled by the administrative branch of the government in the context of industrial, or chaebol policies. Under the Kim Yong Sam administration, prevailing policy toward large, ailing firms was simple bailouts. However, as losses from bad loans exceeded the depths of financial institutions’ pockets, the system collapsed. In the meantime, formal bankruptcy proceedings had not been given a fair chance to develop into a reliable mechanism. The efficiency of exit mechanisms has become even more important since the onset of the crisis, as roughly one-third of the chaebol firms went bankrupt. While it was widely believed that exit mechanisms in Korea had serious deficiencies, there has not been a rigorous and comprehensive analysis of exit mechanisms in Korea. This monograph, written by Il Chong Nam of KDI and Soogeun Oh of Ewha Womans University, is the result of the first such attempt at finding the major weaknesses in exit mechanisms in Korea and the probable causes of those weaknesses. This monograph offers a comprehensi


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Title Bankruptcy of large firms and exit mechanisms in Korea
Similar Titles
Material Type Reports
Author(English)

Nam, Il Chong; Oh, Soogeun

Publisher

Seoul:Korea Development Institute

Date 2000-12
Pages 157
Subject Country South Korea(Asia and Pacific)
Language English
File Type Documents
Original Format pdf
Subject Economy < Economic Administration
Holding Korea Development Institute