The reform programmes followed the government's demand that top conglomerates, or chaebol, reduce their debt-to-equity ratios to 200 per cent by the end of next year.

Hyundai, Samsung and three other leading conglomerates Daewoo, LG and SK groups are also under pressure to scrap cross-debt guarantees between units in different industries by the end of this year.

The five groups now have more than 250 units between them.

``We have provided a re-structuring plan to our creditor banks. The plan calls for Hyundai to consolidate non-viable units,'' a Hyundai group official told AFP.

He declined to give details, but sources at the powerful Financial Supervisory Commission (FSC) said Hyundai would try to shed some 20 of its 60 affiliates through mergers, sales and liquidation.

``Other conglomerates will followsuit. The groups and their creditor banks are expected to announce their deals in mid-December,'' an FSC official said.

Hyundai has offered to re-shape group operations around five core sub-divisions, including automobile and construction.

Samsung also said it would consolidate marginal businesses and non-core lines.