Korean Banks Sustain Losses Due to Daewoo's Liquidity Crisis

The third quarter of 1999 saw many Korean banks reporting significant losses, largely due to their exposure to the liquidity crisis of the Daewoo Group. The Financial Supervisory Service reported that these banks, having received public funds to mitigate their losses earlier in the year, ultimately ended the quarter with a combined loss of 172.6 billion won (approximately $144.3 million). This significant downturn in financial performance was primarily attributed to charges related to outstanding loans to Daewoo affiliates. Meanwhile, in a contrasting development, Honda Motor Co. introduced its innovative Insight hybrid subcompact model, boasting exceptional fuel economy, capable of running 35 kilometers per liter.

Key Takeaways:

• Korean banks faced significant financial strain in the third quarter of 1999, largely due to their exposure to Daewoo Group's liquidity crisis.
• The Financial Supervisory Service reported that these banks sustained a combined loss of 172.6 billion won (approximately $144.3 million) in the third quarter.
• The banks' losses were primarily attributed to charges related to outstanding loans to Daewoo affiliates, totaling losses in the third quarter.
• Honda Motor Co. introduced its innovative Insight hybrid subcompact, utilizing gasoline and electricity power to achieve improved fuel economy.
• The Insight hybrid model uses a gasoline engine at high speeds and an electric motor at low speeds, achieving a notable improvement in fuel efficiency.

Statistics:

• The combined loss of Korean banks in the third quarter of 1999 was 172.6 billion won (approximately $144.3 million).
• The losses were primarily attributed to charges related to outstanding loans to Daewoo affiliates.
• Honda's Insight hybrid subcompact model achieves a fuel economy of 35 kilometers per liter.

Sources:

• Asia Pulse (http://www.asiapulse.com)
• Financial Supervisory Service (FSS)
• Honda Motor Co. (TSE:7267)
• COMTEX (http://www.comtexnews.com)