Chaebol General Motors and Renault. The chaebol debts were not only to state industrial banks but also to independent banks and their own financial services subsidiaries. The scale of the loan defaults meant that banks could neither foreclose nor write off bad loans without themselves collapsing, so the failure to service these debts quickly caused a systemic banking crisis, and South Korea turned to the IMF for assistance. The most spectacular example came in mid-1999, with the collapse of the Daewoo Group, which had some US$80 billion in unpaid debt. At the time, it was the largest corporate bankruptcy in history.
Pension policy in South Korea receiving payment as an annuity. As the Korean government aimed for the rapid economic development, social welfare was not the primary task in the 1970s and 1980s Politicians relied on the Confucianism rooted society that the family should take care and support the old people In 2000, South Korea have remained the aging society status that the elderly population ratio is reaching 7 percent Kim's study explained that an aging status of the South Korea is more than 135 years than France and 68 years older than Germany Korea National Statistical Office estimated that the South Korea is expected to