The main problems of the Korean economy were over investment and persistent inflation caused by the expansionary monetary policy from 1979, the government switched the focus of economic policy to the stabilization of the economy and the scaling down of investment in Hcis. In 1979, the government set the M2 growth rate at 25 percent,10 percent lower than the 1978 rate. It also diverted financial support towards the expansion of consumer goods industries, which led to a reduction of investment in HCIS. Throughout the 1980s, the government reorganized the HCIS to raise their competitiveness through the creation of economies of scale and to reduce the social costs associated with massive corporate bankruptcies. The restructuring process covered the electricity generation,heavy construction equipment,automobile, and Diesel engine industries.however , the government underestimated not only the transaction costs of M&As, but differences in production technology and the technological levels of the merged firms or the acquired and acquiring firms,leading to many idle facilities.in addition, the government carried out a program of industrial rationalization. It revised the tax reduction regulation law. The revision states that: the government sets the industry rationalization criteria; and firms going through rationalization according to these criteria; will benefit from tax reductions or exemptions. Until 1988, 70 firms were classified as firms necessitating rationalization. Among them,67 firms were disposed of through government-led M&As. Two firms went through a reorganization process and one firms was liquidated.note that most firms were merged with or acquired by third parties based on criteria set by the government, not through market discipline
The main problems of the Korean economy were over investment and persistent inflation caused by the expansionary monetary policy from 1979, the government switched the focus of economic policy to the stabilization of the economy and the scaling down of investment in Hcis. In 1979, the government set the M2 growth rate at 25 percent,10 percent lower than the 1978 rate. It also diverted financial support towards the expansion of consumer goods industries, which led to a reduction of investment in HCIS. Throughout the 1980s, the government reorganized the HCIS to raise their competitiveness through the creation of economies of scale and to reduce the social costs associated with massive corporate bankruptcies. The restructuring process covered the electricity generation,heavy construction equipment,automobile, and Diesel engine industries.however , the government underestimated not only the transaction costs of M&As, but differences in production technology and the technological levels of the merged firms or the acquired and acquiring firms,leading to many idle facilities.in addition, the government carried out a program of industrial rationalization. It revised the tax reduction regulation law. The revision states that: the government sets the industry rationalization criteria; and firms going through rationalization according to these criteria; will benefit from tax reductions or exemptions. Until 1988, 70 firms were classified as firms necessitating rationalization. Among them,67 firms were disposed of through government-led M&As. Two firms went through a reorganization process and one firms was liquidated.note that most firms were merged with or acquired by third parties based on criteria set by the government, not through market discipline
การแปล กรุณารอสักครู่..