The reports said the group, whose 41 affiliates made a combined net loss of 55.4 billion ($46.8 million) on total sales of 61.72 trillion won in 1998, faced tightening liquidity. The Maeil said it would retain only car-maker Daewoo Motor Co, trading and construction firm DaewooCorp and shipbuilding and heavy machinery firm Daewoo Heavy Industries Co.

The group has said it cut the number of affiliates to 23 by the end of June and would slash that number to nine by year-end. If confirmed, the plan would be the most drastic ever reform announced by any of the country's highly leveraged chaebol - family-run business conglomerates engaged in a wide range of business lines, including some that are far from profitable. President Kim Dae-jung's government, under support and guidance from the IMF, has told each of the top chaebol to streamline operations and refocus them on core sectors.