Perhaps nothing is more symbolic of Asia's miraculous rise and fall than the Korean chaebol. These huge, lumbering beasts devoured domestic and international capital and thundered in herd-like fashion towards their one goal - market share. Adding debt and capacity irrespective of return on capital, the chaebol were stopped in their tracks by the financial crisis. Yet even today, the top five are swallowing nearly 80% of the funds available in the local capital markets. Their debt-to-equity ratios stand at dizzying levels. The refusal of these mammoths to restructure their operations could yet wreck Korea, despite the rise of the yen and the $60 billion bail-out from the IMF. The government is talking tough - but can it get tough enough?
Fortunately, not all of Korea is part of the chaebol system, nor is every Korean company an overfed monster that ignores the basics of business and economics. Glass-maker Hankuk Glass is an example of one of those rare animals among listed Korean companies: a firm run by a management committed to profitability.
Glass is most economically manufactured locally. The cost of transportation and packaging relative to the cost of the glass itself is too high for it to be shipped long distances.