Korean chaebols and non-chaebol firms must go through
severe restructuring to overcome the current crisis. The new
role of the government is to fister the legal and economic
environment for firms so that they are able to adopt various
methods of restructuring. Also, firms and the government should
devise a system to avoid possible future crisis. One fundamental
step is to modernize corporate governance. Corporate decisions
should protect the rights not only of majority shareholders but
also of minority shareholders. Reformed banks should set up a
system which enables evaluation of each investment decision.
Market competition should be the underlying force to discipline
managers all the time. Then firms in Korea will be equipped
with the system, at least, that will minimize the chance of
inviting a second crisis.

Ⅰ. Introduction

Ⅱ. Chaebol : Growth Engine of the Past

Ⅲ. Challenges and Their Origin
　1. Difficulties of Korean Companies
　2. Sources of the Problems

Ⅳ. Corporate Governance and Role of Government

Ⅴ. Other Issues
　1. Labor Market Flexibility
　2. Smooth Exit

Ⅵ. Conclusion