Abstract South Korea has accomplished remarkable economic growth under the positive industrialization strategy by the government putting emphasis mainly on steel, a machinery, chemistry, automobiles, and electron since the Korean cease-fire agreement in July, 1953. However, O-winig to the instability of domestic industries, accumulation of trade deficit, outflow of short-term funds, and the influence of Asia economic crisis, serious finance and currency crisis took place. As a result South Korea was forced to reconstruct itself under the so-called IMF control system in November, 1997.
This paper tries to examine ‘Zaibatsu’ of South Korea consisting of industrial trust, especially the automobile industry which can be called the mainstay of the organization. I want to analyze many problems of the industry or individual automobile manufacturers. Those problems have been pointed out by those concerned. I would like to break down their causes and unfavorable things that led to the bankruptcy of 'KIA group'. And I want to think about the possible ways to correct the current economic stagnation which brought about this situation.