Korea Inc. Balks

For years, no industry seemed too crowded and no market too far-flung to escape the tendrils of South Korea's expansion-minded chaebol. Conglomerates such as the $47.6 billion Hyundai Group boasted of making everything from "chips to ships" from Europe to Latin America. The omnivore strategy seemed to work--until the Korean economy almost collapsed in November under the weight of $150 billion in foreign debt.

Now, with Korea's debt restructuring still in doubt, investors are looking for signs that the chaebol are slimming down into focused companies that can produce steady profits. Investors especially want to see the top four--Hyundai, Daewoo, Lucky Goldstar, and Samsung, who account for more than half of Korean corporate debt--set the course for Korea's new economy.