While mid-sized conglomerates have been active in courting foreign partners to prop up their financial situations, the five conglomerates have shown disappointing results. To be sure, these results are disappointing. As the wind of reform blew strongly in the wake of President Kim's inauguration, the five conglomerates rushed to announce their respective restructuring plans, under which they promised to attract foreign funds at the expense of even their crown jewels. Some critics predict that debt problems in the top five may emerge as a stumbling block to the country's early economic recovery. Their debt woes have shown little indication of abating, despite government prodding to trim debts.
Some financial analysts warn that the five conglomerates are already ailing from cashflow problems.
Last week, Daewoo Corp. president Chang Byung-ju had to convince reporters that Daewoo Group, the third largest chaebol, had no particular difficulties as far as cashflow is concerned, as rumors of financial strain among the Daewoo Group affiliates spread. We don't want to even dream of it,'' a ranking MOFE official said.