Daewoo fail emphatically demonstrated that the government was prepared
to make difﬁcult decisions and that no chaebol now was “too big to fail.”
The ability of creditors to force a number of large chaebol into receivership
and to take control of Daewoo should help deter imprudent corporate
investments in the future.
Arguably, with the Daewoo mess on his mind, President Kim made a
forceful address to the nation on the 54th anniversary of National Liberation on 15 August 1999. He stated that “without restructuring the corporate giants, the chaebol, the most problematic