South Korean cuts foreign investment

South Korea's largest business groups have announced major investment cuts, in response to the country's financial crisis.

The three biggest conglomerates, Samsung, Hyundai and L.G. say they will scale down overseas operations and concentrate on a small number of core businesses -- after years of unrestrained diversification.

Samsung is closing regional headquarters in London, New York and Singapore, and Hyundai is delaying major investment projects in Britain, Indonesia and China.

The BBC correspondent in Seoul says South Korea's giant family-owned businesses are seen as largely responsible for the country's economic crisis; most took on huge debts in the rush for global expansion, paying little attention to profitability.

From the newsroom of the BBC World Service