BUSINESSWEEK ONLINE : SEPTEMBER 25, 2000 ISSUE
INTERNATIONAL -- COVER STORY An Economy at War with Itself South Korea boasts as vibrant an info-tech sector as any other emerging market. But the country is still weighed down with debt and other debris from the collapsing Old Economy. NEW KOREA -- Some 60% of Korea's 45 million people use mobile phones. Some 50% will be online by yearend. -- Roughly 7,700 new companies started this year, up 50% over last year. The government is providing tax breaks and other incentives. -- Some $24 billion in foreign direct investment has rolled in over the past two years, mostly into info tech. Some $16 billion more is expected this year. OLD KOREA -- Seoul banks carry at least $100 billion in nonperforming loans. Corporate debt is $630 billion--a staggering 150% of GDP. -- Chaebol such as Daewoo and Hyundai haven't restructured quickly enough and carry big debt loads. -- Business-to-business online exchanges that could lower procurement costs have been slow to take off. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _					RELATED ITEMS Korea's Digital Quest (int'l edition) COVER IMAGE: Korea: Its Digital Quest CHART: Digital Korea TABLE: An Economy at War with Itself Slammed into the Pavement (int'l edition) CHART: The Unraveling of Kosdaq Breaking Away: Success outside the Chaebol (int'l edition) INTERACT E-Mail to Business Week Online

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