Several weeks ago it offered to buy Kumho Asiana's holding at a 30% premium to the market price.

ECONOMIST: Restructuring South Korea's chaebol

Regulators say that they have been urging banks to take a hard line with nine struggling chaebol, including Kumho Asiana.

ECONOMIST: Restructuring South Korea's chaebol

In addition to Daewoo, Kumho Asiana owns Asiana, the country's second-biggest airline, and petrochemical, tyre, life-insurance, resort and transport businesses.

ECONOMIST: Restructuring South Korea's chaebol

That would still leave Kumho Asiana about 1.7 trillion won short of its obligations under the put option, according to CLSA, a broker.

ECONOMIST: Restructuring South Korea's chaebol

So Kumho Asiana needs to find another 4 trillion won.

ECONOMIST: Restructuring South Korea's chaebol

In fact, work to level the hills in the way at the Kumho site is not yet finished, and the first concrete is unlikely to be poured before the end of next year.

ECONOMIST: America and North Korea