TCRAP_Public/980202.MBX    T R O U B L E D   C O M P A N Y   R E P O R T E R     

                 Asia & Pacific Edition     

        Monday, February 2, 1998, Vol. 1, No. 1

                        Headlines

C H I N A

BEIJING TUNING DEVICE PLANT
JINGSHENG COPPER TUBING COMPANY LIMITED
MANSION HOLDINGS
RIHUA NO 1 CHEMICAL INDUSTRY PLANT
WUZHOU POWER SUPPLY PLANT
XINYUE BRONZE PIPE PLANT

H O N G   K O N G  

CA PACIFIC SECURITIES
PEREGRINE INVESTMENTS HOLDINGS LTD.

J A P A N  

DIANA GILKEN KK
HOKKAIDO TAKUSHOKU BANK LTD.
JUROKU BANK
KANSAI KISEN HAISHA
MITSUBISHI ELECTRIC CORP.
NAMCO LTD.
NIKKO SECURITIES CO.
NITTO KOGYO COMPANY
NL FINANCE CO., LTD.
SANYO SECURITIES CO.
SHIN NIKKEI CO.
TAKUGIN TEITO SHOKEN
TOTOKU ELECTRIC CO.
YAMAICHI INFORMATION SYSTEM
YAMAICHI SECURITIES

K O R E A

BOSSUNG CONSTRUCTION CO.
CHONG GU CONSTRUCTION CO.
CHUNG KWANG IND.
CHUNGSOL MERCHANT BANK
CORYO MERCHANT BANK
DONG SUNG
GYONGNAM MERCHANT BANK
HALLA GROUP
HANGDO MERCHANT BANK
HANWHA MERCHANT BANK
HYOSUNG MOTORS AND MACHINERY
HYUNDAI GROUP
JINRO COORS BREWING CO.
KIA MOTORS
KUKDONG CONSTRUCTION CO.
KYUNGIL MERCHANT BANK
POSONG CO.
SAMMI STEEL CO.
SAMSAM MERCHANT BANK
SAMSUNG ELECTRONICS CO. LTD.
SAMYANG FOODS CO. LTD.
SEO KWANG CONSTRUCTION IND.
SHINHAN MERCHANT BANK
SHINSIGAE MERCHANT BANK
SSANG BANG WOOL
SSANGYONG MERCHANT BANK

O C E A N I A

PT. ADHI KARYA
PT. WIJAYA KARYA

T H A I L A N D

BANK OF SIAM
HANBO STEEL CORP.
HWA KAY THAI HOLDINGS LTD


=========
C H I N A
=========


BEIJING TUNING DEVICE PLANT
---------------------------
Because of poor management and asset shortages, as well as
its inability to service debts, the Government of China has
decided to liquidate Beijing Tuning Device Plant in order to
transfer the concern's assets and restructuring debts.  See
http://www.chinanews.com/eng_dir/9712/1217.html (China News  
Service 12/17/97).


JINGSHENG COPPER TUBING COMPANY LIMITED
---------------------------------------
The shareholding enterprise Jingsheng Copper Tubing Company
is jointly operated by the China National Non-Ferrous Metals
Industry Corporation and Xinyue Copper Tubing Plant.  The
company, which specialises in red copper products, has made
losses since it began operations, and had debts of RMB73.12m
by May, 1997.  

The company was declared bankrupt by the Beijing Higher
People's Court for failing to meet debts and is slated for
auction. See http://www.chinanews.com/eng_dir/9712/1217.html
(China News Service 12/17/97)


MANSION HOLDINGS
----------------
Mansion Holdings says it is experiencing liquidity problems
and will have difficulty servicing hundreds of millions of
dollars in bank borrowings.  Mansion said it had unaudited
utilised bank loans and trade facilities amounting to $513
million as of December 15. Its unaudited cash balances at
that date were $26 million.  Trust receipt loans and other
bank loan repayments of $249.5 million had become overdue as
of January 20.  A further $110.5 million would become
uverdue within three months.  This compared with the
company's audited consolidated net tangible assets as at
December 1996 of $291.7 million.

Mansion said it was discussing a restructuring with bankers
and had appointed Coopers & Lybrand as independent reporting
accountants to evaluate its financial position and future
cash flow projections.  A report is due by the end of
January or early February.

The company also said a mainland enterprise, China Success
International Investment (Group), had agreed to subscribe
for a $13.96 million secured note.  The note was convertible
into 87.28 million new shares, representing about 14.8% of
the company's enlarged issued share capital.  (South China
Morning Post 01/21/98)


RIHUA NO 1 CHEMICAL INDUSTRY PLANT
----------------------------------
Beijing-based and state-owned Rihua No 1 Chemical Industry
Plant will be liquidated because of poor management and
asset shortages, as well as Rihua's inability to service
debts.  See http://www.chinanews.com/eng_dir/9712/1217.html
(China News Service 12/17/97).


WUZHOU POWER SUPPLY PLANT
-------------------------
The Changhong Electronics Group, China's largest color TV
producer, is pulling together the details to take over
Sichuan's largest enterprise ever to go bankrupt, the Wuzhou
Power Supply Plant, in a 72.5 million yuan purchase
agreement.  (Xinhua English Newswire 01/30/98)


XINYUE BRONZE PIPE PLANT
------------------------
Xinyue Bronze Pipe Plant, a copper tubing producer in North
China, accumulated debts of RMB135million between 1991 and
May, 1997.  The State owned plant is slated to to be
auctioned after being declared bankrupt by the Beijing
Higher People's Court for failing to meet debts. See
http://www.chinanews.com/eng_dir/9712/1217.html
(China News Service 12/17/97)



=================
H O N G   K O N G  
=================


CA PACIFIC SECURITIES
---------------------
Financial Services Secretary Rafael Hui said following the
collapse of CA Pacific Securities Ltd the compensation fund
available to victims of brokerage collapses will be
expanded.  Hui told a news conference yesterday that the
upper limit of 8 mln hkd available for a payout to investors
of a failed stockbroker will go up.  However, he said he is
unable to announce the new upper limit, as this depended on
the results of investigations into the failure of CA
Pacific.  Hui said the new limit will be set after the
firm's liquidators "work out a reasonable figure" based on
the compensation demands of some 6,000 investors who lost
out when CA Pacific collapsed last week.  Stock exchange
authorities and the Securities and Futures Commission will
each inject 150 mln hkd into the compensation fund, boosting
it from its current 480 mln, Hui added.

C.A. Pacific Finance Ltd owes 20 financial institutions
debts totalling 570 mln hkd, according to statments made by
provisional liquidators Denis Ho and Jan Blaauw earlier this
month.  The provisional liquidators told reporters at a news
conference that CA Pacific Securities has 2,000 clients,
while CA Pacific Finance has 9,000.  They added that a
preliminary report on the liquidation will be completed
within six months.

Securities and Futures Commission chairman Anthony Neoh said
the market value of shares owned by the CA Pacific and
pledged as collateral to creditors was worth about 1 bln hkd
as of last Friday.  "One of the tasks of the provisional
liquidators is to ensure that all investors in the
securities company and clients in the finance company
register their claims," Neoh said.

                   *   *   *

On Monday, the Stock Exchange of Hong Kong invited claims
againstthe Unified Exchange Compensation Fund for losses
incurred by clients of CA Pacific Securities.  The claims
can be for pecuniary loss incurred in the course of or in
connection with CA Pacific Securities' stockbroking
business; or in relation to any money, securities or other
property entrusted to CA Pacific Securities or any of its
employees.  Claimants must complete a claim form and produce
evidence substantiating their claims to the Exchange's
Compensation Committee.

Claim forms are obtainable in person or through the post at
the following offices of the Hong Kong Stock Exchange:

   (a) 1st Floor, One and Two Exchange Square;

   (b) 36th Floor, Jardine House;

   (c) 17th Floor, Worldwide House, 19 Des Voeux Road,
       Central; and

   (d) Upper Ground Floor, V-Heun Building, 128-140 Queen's
       Road Central
                                
All claims must be submitted not later than 5 pm on Friday,
May 1, 1998.  The Exchange's hotline, 2840 3729 will answer
investors' queries between 9 am and 5 pm.


PEREGRINE INVESTMENTS HOLDINGS LTD.
-----------------------------------
Banque Nationale de Paris is poised to acquire Peregrine
Investments Holdings Ltd's equity operations in Hong Kong
and China, the South China Morning Post reported last week.  
The newspaper quoted senior Peregrine equity executives as
saying that group managing director Francis Leung will come
with any acquisition of the equity business.  Executives
from Peregrine's international operations will make a last
ditch effort to find a buyer for the regional equity
operations, with another European bank said to be
interested.
    
The South China Morning Post said the price agreed by BNP is
not known but senior managers within Peregrine's Hong Kong
and China team are "said to have lobbied for a deal with the
French bank."  By Friday, in Hong Kong, senior BNP officials
in Paris were claiming a deal had been concluded for
Peregrine's equity franchise, the newspaper reported.



=========
J A P A N  
=========


DIANA GILKEN KK
---------------
Teikoku Data Bank said privately held property developer
Daina Giken KK and two affiliates have filed for self
liquidation with the Tokyo District Court.  The Daina group
reports debts of 12.3 bln yen, and attributes its collapse
largely to funding difficulties stemming from its failure to
achieve a restructuring.  (AFX News 01/20/98)


HOKKAIDO TAKUSHOKU BANK LTD.
----------------------------
Hokkaido Takushoku Bank Ltd., one of Japan's top 10
commercial banks, collapsed, marking the country's worst
banking failure since World War II.  Executives of the
Sapporo-based Hokkaido Takushoku Bank announced that their
institution was effectively bankrupt.  All of the bank's
senior executives formally resigned after the announcement.
The bank's president, Sadamasa Kawatani blamed Hokkaido
Takushoku's woes on bad loans made during the speculative
1980s. Kawatani said his bank's operations and assets,
excluding non-performing loans, would be transferred to
North Pacific (Hokuyo) Bank Ltd., a regional bank on the
northern island of Hokkaido, "in a few months."  (TCR
11/18/97)

Last week, the Mainichi newspaper reported that Finance
Ministry bank inspector Toshimi Taniuchi, arrested recently
in a bank-related bribery case, helped failed Hokkaido
Takushoku Bank Ltd. obtain large tax deductions related to
the bank's bad loans at the bank's request.  The newspaper
report failed to cite sources. Before April last year, banks
were allowed to deduct bad loans that inspectors judged were
"uncollectable," or "hard to collect."  Takushoku Bank
declined to comment on the matter, the paper said.


JUROKU BANK
-----------
Gifu-based Juroku Bank plans to disclose the nonperforming
loan total of all the companies in the group, including
businesses involved in credit card and leasing  operations,
for the fiscal term ending in March 1998.  This covers 11
companies, including:

         *  Juroku DC Card,

         *  Juroku JCB, and  

         *  Juroku Lease.  

The nonperforming loan amount will be split into three
categories: loans to failed borrowers, loans in default, and
loans exempted from full interest.

The bank will apply  consolidated concepts to nonperforming
loans in an effort to  raise the clarity of operations.  
Juroku Bank is the first financial institution in all of
Japan to announce a groupwide nonperforming loan summation.  
(Tokyo Financial Wire; 01/29/98)


KANSAI KISEN HAISHA
-------------------
Shares in Kansai Kisen Kaisha fell 18 yen to 91 in trading
Friday.  According to Bloomberg News, the ship operator
widened its pretax loss forecast 120 percent to 550 million
yen for the full year ending in December -- 22.2% less than
the most recent forecast by Toyo Keizai.


MITSUBISHI ELECTRIC CORP.
-------------------------
Standard & Poor's lowered the short-term credit rating for
Mitsubishi Electric Corp. to A-2 from A-1, citing the waning
competitiveness of the firm's semiconductor and consumer
electronics businesses.


NAMCO LTD.
----------
Moody's Investors Service said it placed Namco Ltd's Baa1
senior unsecured long-term debt and counter party ratings
under review for possible downgrade.  Moody's said the move
was prompted by the accouncement earlier that Namco
Cybertainment Inc, Namco's wholly-owned unit, filed for
restructuring under Chapter 11 of the U.S. Bankruptcy Code.

The review will consider the potential impact that the
bankruptcy of the U.S. subsidiary may have on the company's
operation, as NCI contributed about 9% of Namco's
consolidated sales.  Moody's said the move will affect
Namco's outstanding debt, totalling 40 bln yen.


NIKKO SECURITIES CO.
--------------------
As President Masashi Kaneko and former Managing Director
Hiroyuki Hamahira were questioned at a budget committee of
the lower house in parliament in connection with making
alleged illegal payoffs to lawmaker Shokei Arai, shares in
Nikko Securities Co. fell 50 yen to 456, according to a
report published by Bloomberg News.


NITTO KOGYO COMPANY
-------------------
Nitto Kogyo Company, owing 276 billion yen to creditors,
together with its golf course management subsidiary, The
Nitto Life Company, owing 69 billion yen in debts, applied
for a court-mediated settlement with its creditors in the
Tokyo District Court, according to a report published by
Bloomberg News.  Nitto, boasting membership in excess of
73,000 golfers, owns and operates 30 golf courses in Japan,
five in the United States.  Prior to making its application
in the Tokyo District Court, Nitto sold the Sottish
Turnberry Hotel to Starwood Lodging Corp. for approximately
$51.5 million.  (TCR 12/30/98)


NL FINANCE CO., LTD.
--------------------
Matsushita Electric Industrial Co., Ltd. announced Thursday
its decision to liquidate its subsidiary NL Finance Co.,
Ltd.  NLF, an Osaka-based wholly-owned subsidiary of MEI,
was established in March 1992 for the purpose of collecting
outstanding loan receivables transferred from the former
National Leasing Co., Ltd., another subsidiary of MEI. As
announced by MEI in February 1997, an aggravated business
environment triggered by a decline in real estate mortgage
values and business failures of various debtors forced NLF
to write down a substantial part of its loan portfolios,
resulting in a substantial loss, and in March 1997 MEI wrote
off its outstanding loan to NLF in the amount of 100 billion
yen and its 4 billion yen investment in share capital of
NLF. Thereafter, NLF has concentrated its efforts on
collecting and settling its outstanding loan receivables and
it has now reached a point in which all matters can be
conclusively settled.

In connection with the liquidation of NLF, MEI will incur a
liquidation loss.  While the exact amount of the loss is not
yet determined, on a non-consolidated (parent company alone)
basis the amount is expected to total some 120 billion yen.
MEI intends to cover the loss through the use of non-
recurring profit realized from the sale of a part of its
securities portfolios, and the above measures are not
expected to have a material effect on MEI's parent-alone
earnings for the current fiscal year, ending March 31, 1998.
On a consolidated basis, as well, the liquidation of NLF
will not have a material adverse effect on the Matsushita
group's consolidated earnings for the current fiscal year.

Matsushita Electric Industrial Co., Ltd. is better known for
its "Panasonic," "National," "Technics" and "Quasar" brand
names.


SANYO SECURITIES CO.
--------------------
Sanyo Securities Co. announced it had obtained court
protection from its creditors and that it is giving up on
trying to free itself from a crushing debt burden.  Sanyo
said it will stop all business operations except customer
withdrawals, and make "utmost efforts" to restructure under
the protection of the Tokyo District Court, which will
appoint an administrator.  (TCR 11/06/97)


SHIN NIKKEI CO.
---------------
Shin Nikkei Co. shares dropped 15 yen to 131 in trading
Friday.  The building material maker widened its pretax loss
forecast 58.3 percent to 9.5 billion yen for the full year
ending in March -- 58.3% lower than the most recent forecast
by Toyo Keizai, according to Bloomberg News.


TAKUGIN TEITO SHOKEN
--------------------                        
Takugin Teito Shoken, a nonbank affiliate of the failed
Hokkaido Takushoku Bank (Takugin ) has applied to the
Sapporo regional courts for voluntary bankruptcy.  Total
losses are 539.1 billion yen.  Excess liabilities are 205.2
billion yen. Takugin had been supporting the securities firm
for four years.  The peak lending balance in March 1994 was
528.1 billion yen, and the sales balance was 180.3 billion
yen.  But after the bubble collapsed and land prices
tumbled, the firm's performance  worsened.  (TCR 11/20/97)


TOTOKU ELECTRIC CO.
-------------------
Shares in Totoku Electric Co. fell 19 yen to 285 in trading
on Japanese exchanges Friday.  The company widened its
pretax loss forecast 172.7% to 1.50 billion yen for the   
full year ending in March.  That's 114.3 percent less than
the most recent forecast by Toyo Keizai, according to
Bloomberg News.  


YAMAICHI INFORMATION SYSTEM
---------------------------
Yamaichi Information System and Yamaichi Research Institute
have both filed applications with the Tokyo District Court
for liquidation, Teikoku Data Bank told AFX News service
today.  Teikoku said Yamaichi Information had debt of 45 bln
yen and Yamaichi Research Institute 6.0 bln yen.  The move
follows Yamaichi Securities' decision last year to wind up
its operations following the booking of off-balance sheet
losses.


YAMAICHI SECURITIES
-------------------
One of Japan's "big-four" securities companies has announced
that it is effectively insolvent and will decide Monday
whether or not to close its doors.  A statement issued today
by the 100-year-old Yamaichi Securities company in Tokyo
said: "We are currently discussing the options, including a
voluntary closure, but we have reached no conclusion yet."  
The statement said the company does not have a deficit in
its capital account, and its first priority is to protect
its clients. Atsushi Nagano of the Finance Ministry's
Securities Bureau told reporters at an emergency news
conference the ministry will take what he termed
"appropriate steps," based on Yamaichi's final decision.  

Nagano said the government suspects the company of having
been less than honest about its true financial condition,
having liabilities in excess of 200 billion yen ($1.59
billion) on its balance sheets. Nikkei News said Yamaichi
had debts of about 3 trillion yen, or $24 billion.  (TCR
11/25/97)

The Nihon Keizai reported in December 1997 that Japan's
Sumitomo Bank Ltd. and Paris-based Societe Generale will buy
as much as a 90% stake in subsidiary Yamaichi International
Capital Management Co.  (TCR 12/11/97)

Last week, Yamaichi Securities Co. announced that it would
dismiss 1,990 employees, or about 23 percent of its
workforce, and close 19 domestic branches, the Nihon Keizai
newspaper reported.  Those layoffs will be followed by the
firing of 2,345 more employees and close 57 more branches at
the end of February, with the remaining branches to be
closed and all but 300 employees to be dismissed by the end
of March. The brokerage has canceled contracts for about 3.5
trillion yen ($27.46 billion) of the remaining 5 trillion
yen in assets it holds, and is in the process of returning
stock and other certificates to investors, the paper said.

In trading on the Tokyo exchange Friday, YSC's shares rose 1
yen to 3 yen on speculation that shareholders would receive
a dividend in March.  According to Bloomberg News, the
Company denied that speculation.


=========
K O R E A
=========


BOSSUNG CONSTRUCTION CO.
------------------------
Bosung Construction Co. is a construction firm reportedly
gone bust, leading to a reduction in the overall supply of
new homes. (The Korea Herald News 01/27/98)


CHONG GU CONSTRUCTION CO.
-------------------------
Chong Gu Construction Co. and three other key subsidiaries
of the Chong Gu conglomerate announced that they will
default on $9.9 million in maturing debts and are asking a
court to help reschedule debt payments and allow time to
unload assets.  Chong Gu is South Korea's leading apartment
builder,  The concern borrowed heavily in the early 1990s to
build a department store in Seoul and open a regional
television network in the central provincial city of Taegu.

The group's debts total $713 million, roughly the amount of
its total sales last year.  Apartment sales this year did
not meet expectations.  (TCR 12/30/97)

The company is also known as Chonggu Construction Co. (The
Korea Herald News 01/27/98)


CHUNG KWANG IND.
----------------
Chung Kwang Ind., a leading name in animal feed
manufacturing, requested court mediation after its
preliminary bankruptcy, failing to honor 500 million won
worth of promissory notes.  (The Korea Herald News 12/22/97)


CHUNGSOL MERCHANT BANK
----------------------
One of ten merchant banks declared insolvent by the Ministry
of Finance and Economy on Friday, January 30, 1998.  The
MoFE has ordered the bank to close and has scheduled a
hearing for revocation of the bank's business license.


CORYO MERCHANT BANK
-------------------
One of ten merchant banks declared insolvent by the Ministry
of Finance and Economy on Friday, January 30, 1998.  The
MoFE has ordered the bank to close and has scheduled a
hearing for revocation of the bank's business license.


DONG SUNG
---------
Dong Sung, a construction firm affiliate of Hyosung Motors
and Machinery, went belly up after it failed to honor 6
billion won in promissory notes.  (The Korea Herald News
12/22/97)


GYONGNAM MERCHANT BANK
----------------------
One of ten merchant banks declared insolvent by the Ministry
of Finance and Economy on Friday, January 30, 1998.  The
MoFE has ordered the bank to close and has scheduled a
hearing for revocation of the bank's business license.


HALLA GROUP
-----------
Halla Group, South Korea's 12th-largest conglomerate and
best known for its shipbuilding and auto parts
manufacturing, was declared bankrupt Saturday after
defaulting on $220 million in debts.  Halla is the sixth
among the country's top 30 conglomerates to topple this
year.  

In total, the conglomerate is estimated to owe $6.4 billion,
or 20 times the total value of its equity, according to
Associated Press reports.  Debts began accumulating when
Halla began building a multibillion-dollar shipyard on the
southwest coast in 1992.  Its troubles came to a head when
Southeast Asian financial turmoil hit South Korea, sending
interest rates higher and making already debt-ridden South
Korean banks reluctant to lend.  This month, saying it was
badly strapped for cash, Halla announced it would lay off
half of its 6,000 workers.  (TCR 12/09/97)


HANGDO MERCHANT BANK
--------------------
One of ten merchant banks declared insolvent by the Ministry
of Finance and Economy on Friday, January 30, 1998.  The
MoFE has ordered the bank to close and has scheduled a
hearing for revocation of the bank's business license.


HANWHA MERCHANT BANK
--------------------
One of ten merchant banks declared insolvent by the Ministry
of Finance and Economy on Friday, January 30, 1998.  The
MoFE has ordered the bank to close and has scheduled a
hearing for revocation of the bank's business license.


HYOSUNG MOTORS AND MACHINERY
----------------------------
Hyosung Motors and Machinery, a motorbike manufacturing
company, was declared bankrupt by its creditors Saturday
after it failed to honor promissory notes of 4 billion won.
(The Korea Herald News 12/22/97)


HYUNDAI GROUP
-------------
As part of its restructuring program, the Hyundai Group will
suspend or postpone all new business projects, including the
construction of an integrated steel plant, Park Se-yong,
president of the group's planning and coordination office,
announced.  Hyundai is Korea's biggest conglomerate in terms
of total assets.  Hyundai will also withdraw its management
control of the vernacular daily newspaper, the Munhwa Ilbo.
The giant business empire has meanwhile no intention to take
over subsidiaries of its ailing sister Halla Group.  Meeting
with the press, Park said that the business group has
decided to shelve its long-wished project to build a large
steel plant as it requires too much money at a time when the
nation needs to implement a retrenchment policy in return
for the IMF bailout loan.  To focus all of its energy only
on core businesses, Hyundai will pull out from its
operations of the Munhwa Ilbo, Se-yong said.  Hyundai will
also introduce outside directorship at all of its
subsidiaries on a gradual basis in order to enhance
managerial transparency.  (The Korea Herald News 01/20/98)

Hyundai also faces labor and union issues.  Hyundai union
leaders, according to an article appearing in the
International Herald Tribune, the solution to Korea's
economic crisis lies in getting rid of the leadership of the
chaebol, premised on a belief among union members that the
owners of the chaebol are primarily responsible for the
overexpansion that led to Korea's economic crisis.  Union
leaders, the IHT says, assert that "new management, not
family management," is their first demand.

Friday, a report circulated that South Korea's President-
elect has recommended that Hyundai turn over its chip
operations to rival Samsung Electronics Co. Ltd. in exchange
for Samsung's fledgling automotive operation, according to a
report in Monday's Electronic Buyers' News.  The report can
be found on the publication's Web site at:

   http://techweb.cmp.com/ebn/942/daily/013098news10.html

A Samsung spokeswoman in Seoul confirmed today President-
elect Dae-Jung Kim's proposal, which the two companies are
calling "The Big Deal."  The two conglomerates "are studying
the proposal but have many questions on it," the spokeswoman
told CMP Media's Electronic Buyers' News.  The spokeswoman
also indicated that antitrust issues exist.  A spokesman for
Hyundai in San Jose this week stressed that the company had
no intentions of giving up its core DRAM business.


JINRO COORS BREWING CO.
-----------------------
Jinro Coors Brewing Co. of Korea will be bailed out through
its joint venture with Coors Brewing Co. of the United
States, according to a Jinro spokesman. Jinro Coors is part
of the Jinro Group that went bankrupt in early November,
1997.  Creditors are expected to cooperate in salvaging the
flagship company Jinro Ltd. and Jinro Coors.  (TCR 09/16/97)


KIA MOTORS
----------
With more than $10 billion in debt, Kia was declared near
bankrupt in July, 1997.  In Octoer, 1997, the government
said it would place Kia under court receivership, assume
majority ownership through a state-controlled bank and
install a temporary new management team.  (TCR 11/06/97)

Despite filing for court protection last year, Kia, the
nation's third largest auto maker, continues aggressive
marketing efforts in Aisa, Europe and the USA.  See
http://203.255.151.12/kh0116/m0116b10.html

Kia announced its reorganization plan last week, premised on
selling off most of its unprofitable subsidiaries while
attempting to raise 1 trillion won ($580 million) from
foreign and domestic investors.  

To raise the money, Jin Nyun, Kia's chairman, has appealed
Ford Motor Co., which owns 7.3 percent of Kia Motors Corp.'s
shares, to raise its stake in the company, according to a
report published in the International Herald Tribune.  Ford
continues to refuse comment relative to Kia.

Failing Ford's acceptance of Nyun's bid, Kia places its hope
in large part on the government-owned Korea Development
Bank, Kia's principal creditor, accepting payment of its
loans in the form of shares in Kia.  The plan would turn Kia
into a company largely owned by the government, but
Mr. Jin made clear he believed the company would soon resume
making profit after posting a loss last year. He also said
he would welcome new investment (perhaps from General
Motors, Daewoo or Samsung) that would free Kia from
government control.


KUKDONG CONSTRUCTION CO.
------------------------
Kukdong Construction Co. is a construction firm reportedly
gone bust, leading to a reduction in the overall supply of
new homes. (The Korea Herald News 01/27/98)


KYUNGIL MERCHANT BANK
---------------------
One of ten merchant banks declared insolvent by the Ministry
of Finance and Economy on Friday, January 30, 1998.  The
MoFE has ordered the bank to close and has scheduled a
hearing for revocation of the bank's business license.


POSONG CO.
----------
Posong Co. and one of its affiliates, Posong Construction,
have decided to ask the court to arrange reconciliation with
their creditor banks as they couldn't stand financial
difficulties any longer.  Posong Co., founded in 1974, is
one of the three leading contractors of the Taegu area, the
two others being Cheonggu, which has already asked for
reconciliation with its creditors, and Woobang. Besides
Posong Construction, Posong Co. has nine other affiliates
which include Posong Housing, Posong General Construction,
Posong Development, Maewon Development (golf course) and the
Daily Taegu Ilbo companies.  The total turnover of the
Posong and its 10 affiliates was 673.6 billion won in 1996
and their combined assets 1.1 trillion won as of the end of
1996.  Currently, Posong Co. is building a total of 10,581
apartment units in 17 areas and carrying out civil
engineering projects at 16 sites.  (The Korea Herald News
01/14/98)


SAMMI STEEL CO.
---------------
The future of the bankrupt Sammi Steel Co., is uncertain as
officials attempt to implement a protocol to facilitate
negotiations between creditor banks of the steelmaker and
potential buyers.  Currently, Inchon Iron and Steel Co. and
a consortium led by Pohang Iron and Steel Co. are two of the
main contenders to take over Sammi.  (The Korea Herald News
01/22/98)


SAMSAM MERCHANT BANK
--------------------
One of ten merchant banks declared insolvent by the Ministry
of Finance and Economy on Friday, January 30, 1998.  The
MoFE has ordered the bank to close and has scheduled a
hearing for revocation of the bank's business license.


SAMSUNG ELECTRONICS CO. LTD.
----------------------------
During the past month, South Korea's leading conglomerate
Samsung Group has announced plans that:

    (1) its chairman, Lee Kun-Hee, would inject 100 billion
        won (62.5 million dollars) of his personal wealth
        into the group to improve its financial standing;

    (2) Samsung will concentrate on semiconductors and
        finance as its core businesses;

    (3) Samsung will eliminate cross-loan guarantees between
        its affiliated companies by the end of next year;  

    (4) the group plans to float its core business, Samsung
        Electronics Co., on the New York Stock Exchange by
        2002 after improving its managerial transparency and
        financial status to meet international standards;
        and

    (5) Samsung will work to lower the group's overall debt
        to equity ratio from the current 2.67 to one to 1.5
        to one within five years, partly through scrapping a
        costly plan to build a 102-storey office building.

Samsung made these pledges in a restructuring program
Samsung announced to meet the demand of the International
Monetary Fund (IMF) that South Korea's bloated, family-
controlled conglomerates should be reformed.  Samsung
further agreed to start producing consolidated financial
statements from the year 2000 to enhance managerial
transparency by enabling investors to see through the
financial situation of all Samsung subsidiaries.  (Agence
France-Presse; 01/21/98)

Last Friday, a report circulated that South Korea's
President-elect has recommended that Hyundai turn over its
chip operations to rival Samsung Electronics Co. Ltd. in
exchange for Samsung's fledgling automotive operation,
according to a report in Monday's Electronic Buyers' News.  
The report can be found on the publication's Web site at:

   http://techweb.cmp.com/ebn/942/daily/013098news10.html

A Samsung spokeswoman in Seoul confirmed today President-
elect Dae-Jung Kim's proposal, which the two companies are
calling "The Big Deal."  The two conglomerates "are studying
the proposal but have many questions on it," the spokeswoman
told CMP Media's Electronic Buyers' News.  The spokeswoman
also indicated that antitrust issues exist.  A spokesman for
Hyundai in San Jose this week stressed that the company had
no intentions of giving up its core DRAM business.


SAMYANG FOODS CO. LTD.
----------------------
South Korea's Samyang Foods Co. Ltd. said Friday that
it would file an application with a Seoul district court for
mediation to restructure its debt.  The company said it will
also seek court mediation or court receivership for
some of its unlisted units.

A company spokesman said the company had been suffering from
a drop in sales and heavy short-term debt.  Samyang, with
paid-in capital of 7.2 billion won (4.5 million dollars),
recorded sales of about 153 billion won from January to June
last year.

The Korea Stock Exchange said it had suspended trading in
the shares of Samyang Foods since Friday afternoon.  (Agence
France-Presse 01/30/98)                   


SEO KWANG CONSTRUCTION IND.
---------------------------
A listed construction firm, Seo Kwang Construction Ind.,
declared insolvency, causing further alarm in the
construction secto. (The Korea Herald News 12/22/97)


SHINHAN MERCHANT BANK
---------------------
One of ten merchant banks declared insolvent by the Ministry
of Finance and Economy on Friday, January 30, 1998.  The
MoFE has ordered the bank to close and has scheduled a
hearing for revocation of the bank's business license.


SHINSIGAE MERCHANT BANK
-----------------------
One of ten merchant banks declared insolvent by the Ministry
of Finance and Economy on Friday, January 30, 1998.  The
MoFE has ordered the bank to close and has scheduled a
hearing for revocation of the bank's business license.


SSANG BANG WOOL
---------------
U.S. pop star Michael Jackson flew to South Korea recently
to discuss an investment in a ski resort owned by a South
Korea's bankrupt underwear-maker, Ssang Bang Wool, according
to a report published by the Associated Press.  (TCR
12/30/97)


SSANGYONG MERCHANT BANK
-----------------------
One of ten merchant banks declared insolvent by the Ministry
of Finance and Economy on Friday, January 30, 1998.  The
MoFE has ordered the bank to close and has scheduled a
hearing for revocation of the bank's business license.



=============
O C E A N I A
=============


PT. ADHI KARYA
--------------
PEFINDO lowered the corporate credit rating of PT. Adhi
Karya (ADIK) to idB+/Negative from idBBB/Negative.  PEFINDO
notes that more than 80% of ADIK's construction revenue are
subject to diminution attributable to reduced government
spending. The company's debt to capitalization ratio has
already reached more than 75% during the last few years, and
is expected to be worse in 1997 and 1998. With dollar-
denominated debt amounting to USD 121 million at end 1997,
ADIK is under the pressure of sharp rupiah depreciation and
high interest rate environment.


PT. WIJAYA KARYA
----------------
PEFINDO issued a downgrade on the long-term debt credit
rating of PT. Wijaya Karya (WIKA) to to idB+/Negative
from idBBB/Negative.  The downgrade reflects an anticipated
drop in WIKA's government-related construction projects,
which account for more than 70% of its construction revenue.
These include the IDR 500 billion Cileunyi-Nagreg Toll Road
project which has been delayed by the Government, under
current fiscal austerity program.  The company's short dated
debt maturity profile and its uncertain ability to roll over
part of its debt are compounding its financial pressures.
Nevertheless, the explicit and implicit government support
for WIKA is still believed to provide liquidity support
for the company.


===============
T H A I L A N D
===============


BANK OF SIAM
------------
A Siam City Bank official who asked not to be named revealed
to AFX News that the Bank of Thailand is NOT expected to
take control of the bank tomorrow as was speculated by the
market.  AFX's source said the central bank has not yet
found the appropriate people.


HANBO STEEL CORP.
-----------------
On January 23, 1997, Korea's second-largest steel maker
Hanbo Steel Corp. defaulted on $6 billion of low-interest,
government-controlled loans.  This was the first of a string
of major corporate failures in 1997 in Thailand and Asia and
the beginning of the so-called Asian Flu and Asian Contagion
that rocked world financial markets.


HWA KAY THAI HOLDINGS LTD
-------------------------
Hwa Kay Thai Holdings Ltd said it is in restructuring talks
and may have to close if the negotiations fail, according to
a report released by AFX News.  AFX said Hwa Kay is in talks
with potential investors, bankers and a major business
partner to restructure its business.   Hwa Kay said that if
the negotiations are not successful, "the company may not
have adequate resources to carry on its business."  

Hwa Kay said the talks will include the possibility of
selling part or all its subsidiary, Yee Hing.  Hwa Kay
additionally said one of its landlords has served the
company with a writ claiming the sum of about 4 mln hkd for
nonpayment of rent.  The company's shares, which have been
suspended since Jan 14, will remain suspended pending
further notice, according to the AFX report.

In other news, Bankgkok Bank sued Hwa Kay Thai Holdings Ltd
executive chairman Wong Chong-shan personally over the
repayment of a 40 million USD loan, the South China Morning
Post reported.  The newspaper said Bangkok Bank is suing
Wong, who is also known as Keeree Kanjanapas, for "damages
suffered" as a result of his breach of the agreement for the
loan.


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter Asia & Pacific Edition is a daily
newsletter co-published by Bankruptcy Creditors' Service,
Inc., Princeton, NJ, and Beard Group, Inc., Washington DC.  
Debra Brennan and Lexy Mueller, Editors.

Copyright 1998.  All rights reserved.  This material is
copyrighted and any commercial use, resale or publication in
any form (including e-mail forwarding, electronic re-mailing
and photocopying) is strictly prohibited without prior
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subscription information, contact Christopher Beard at
301/951-6400.


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