Tuesday, June 2, 2009

Chaebol in trouble again?

Recent news disclosed that 9 Chaebol including Daewoo were forced to sign contracts restructuring the behemoth companies. Creditors have received assurances from these Chaebol that they would not invest in new business ventures for the time being and urging them to divest from their non-core units. While some of the Chaebol like samsung, hyundai, and LG (Where did they get such a tacky name like Lucky Goldstar? I see clearly while they abbreviated it to LG) have seized sizable portions of their respective markets, what is the future for the rest of the chaebol who don't compete in an ever shrinking global market? While American conglomerates like GM are being broken up, it looks like the less competitive chaebol are destined for the same fate. It seems like nothing but bad news for the once mighty Daewoo. They will most likely have to sell some of their assets. One thing is for sure, Korean Mergers and acquisitions lawyers will see a huge spike in business.


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