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