Waiting for banks to bite the bullet

series of bankruptcies is battering corporate Korea and putting serious strain on the country's banking sector. But companies and lenders alike are reluctant to embrace radical strategies. The result is a lot of posturing but little in the way of structural solutions. The worst may be yet to come, reports Jack Lowenstein.

The Kia stand-off

Calling all expatriate Korean investment bankers with international corporate finance and restructuring experience: go home – your country needs you.

Your country still distrusts foreigners and their ideas, so perhaps you can introduce the techniques required to ease its worsening corporate and banking credit crisis, and avert the economic implosion threatening to follow it.

Success would allow Korea to complete its transition to the market-based economy it needs as it matures. Failure would mean a worsening chain of chaebol (industrial group) and even banking collapses that might ultimately force the heavy-handed government intervention that policymakers seem to be trying to avoid.

Access intelligence that drives action

To unlock this research, enter your email to log in or enquire about access