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       T R O U B L E D   C O M P A N Y   R E P O R T E R     
  
                    A S I A   P A C I F I C      

           Friday, June 19, 1998, Vol. 1, No. 84-A

                         Supplement


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K O R E A
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The Financial Supervisory Commission, Korea's newly created
financial watchdog agency, announced a list of 55 nonviable
firms that will be subject to immediate liquidation as
creditor banks are to stop providing them with new loans.  
The list was generated at the request of the FSC by the
nation's 26 commercial banks which classified their business
loan-clients into three groups - normal, viable, and
nonviable.

According to news reports, the firms on the nonviable list
will be immediately cut off from all fresh credit lines and
will enter into proceedings for liquidation or third party
takeover.  

The Korea Times quoted Mr. Kang Bong-kyun, the senior
presidential secretary for economic affairs that these 55
companies have already been pronounced "dead" as they have
long been unable to repay loans and interest on time.  Banks
should have denied credit to these firms a long time ago,
but for one reason or another, they have been kept afloat.  

A total of 20,000 employees work at the 55 firms.  Although
Korean bank credit lines are cut off, they can still seek
ways of surviving, either through joint ventures with
foreign firms or by borrowing overseas.

The chairman of the FSC also said that his commission will
launch a second round selection of nonviable companies soon.

The so-called Death List identifies as nonviable firms
needing to be liquidated:

1.  Bum-A Petroleum Co. (Ssangyong Group)
2.  Chinhae Chemical Co.
3.  Dae Chang Enterprise Co. (Daewoo Group)
4.  Daedo Pharmaceutical Co. (Samsung Group)
5.  Daehan Textile Co.
6.  Dong Ah Engineering Co. (Dong Ah Group)
7.  Dongkuk Electronics Co.
8.  Dongkwang Plastics Co.
9.  Dongwoo Development (Daewoo Group)
10. E-hwa Textile Co. (Hankook Group)
11. Fashion Creativity Network Co.
12. Haiai Electronics Co.
13. Haitai Stores Co.
14. Haitai Confectionery Co.
15. Hanil Home Electronics Co. (Samsung Group)
16. Hanil Synthetic Fiber Co.
17. Hanwha Travel Service Co. (Hanwha Group)
18. Hyosung One Number Co.
19. Hyosung Media Co.
20. Hyundai Livart Corp. (Hyundai Group)
21. Hyundai Aluminum Industry Co. (Hyundai Group)
22. Hyundai Construction Equipment Service Co. (Hyundai
    Group)
23. Icheon Electricity Co. (Samsung Group)
24. Il Hwa Co. (Tongil Group)
25. Keo Pyung Construction Co.
26. Keo Pyung Industry Development Co.
27. Kohap International Technology Ltd.
28. Kohap Textile Co.
29. Kohap Precision Chemical
30. Korea Tungsten Co.
31. Korea Industrial Systems Co. (Daewoo Group)
32. Korea Automotive Fuel Systems Ltd. (Daewoo Group)
33. Kyung Jin Shipping Co. (SK Group)
34. LG Owens Corning Corp. (LG Group)
35. LG Electro-Components Ltd. (LG Group)
36. LG ENC Co. (LG Group)
37. My TV (SK Group)
38. Namju Development Co.
39. Newtown Project Co. (New Core Group)
40. Orion Electric Co. (Daewoo Group)
41. Otron Corp.
42. Samsung Watch Co. (Samsung Group)
43. Shi Dai Circulation Co.
44. Shin Han Industry Co. (Kabool Group)
45. Shinho Electronics and Communications Co.
46. Shinho Corp.
47. Shinnam Development Co. (Hanil Group)
48. Si Dai Chuksan Co.
49. SK Warehouse Co. (SK Group)
50. Sun Eel Shipping Co. (Hyundai Group)
51. Taesung Housing Construction Co. (Woobang Group)
52. Wonjeon Energy Co. (LG Group)
53. Woojung Hospital
54. Yangyong Paper
55. Youngjin Co. (Shinho Group)


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter -- Asia Pacific is a daily
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