Last week, the government lost patience, telling creditor banks to take the wrecking ball to the Daewoo group.

CNN: ASIANOW - TIME Asia | South Korea: Overworked

Alarmed by the default of the Daewoo group, investors are shifting money from investment trusts into bank deposits.

ECONOMIST: South Korean banks: Silver lining | The

Some 70 companies, including 12 subsidiaries of the Daewoo group, South Korea's second-biggest chaebol, or conglomerate, that technically defaulted on 100 trillion won of debts last July, now qualify for workout programmes.

ECONOMIST: South Korean banks

Daewoo Group's autocratic chairman, Kim Woo-Choong, has been hyping a sale of up to half of Daewoo Motor to GM as a fait accompli, though it could still unravel over management control or price.

FORBES: Why Korea needs a Margaret Thatcher

There are rumours in Seoul that Kim Woo Choong, the boss of the giant Daewoo group and one of those pardoned by the new amnesty, acted as some sort of special envoy during a recent visit he made to the North.

ECONOMIST: South Korea

When the dust settles, the automaking arm and a few other lines will likely still carry the Daewoo name ("Great Universe" in Korean), but the group is likely to be finished as a major player.

CNN: ASIANOW - TIME Asia | South Korea: Overworked