Being concerned on the costof the transactiontax of the debt-equityswaps is helpful forustore-evaluate the significance of debt-equity swapsor the limitations of the policy.
As part of the deal, these firms are given preferential treatment by the banks, including debt-for-equity swaps, lower interest rates, and access to a pool of some 2 trillion won in new loans and trade financing.
But that action should pave the way for the debt-equity swaps with the bankers that will make Daewoo's subsidiaries healthy enough to sell, so breaking up Mr Kim's fief.