Talks are due to resume in New York this week between the South Korean government and international banks to reschedule the country's heavy short-term debts. Negotiations are proving difficult but there have been signs of returning confidence in the South Korean economy, with the stock market making strong gains this month. Despite growing hopes of an early recovery, the economic pain felt by ordinary South Koreans and companies is intensifying as tough reforms mandated by the International Monetary Fund take effect. Charles Scanlon reports from Seoul:

One of South Korea's less well-known ambitions during the boom years was to become the winter sports capital of East Asia. True there was not a lot of competition from the tropical countries further south but there were some natural obstacles to the project, among them a lack of high mountains and extremely dry winters which normally produce little snow.

No matter, the can-do spirit prevailed and South Korea is now home to about a dozen ski resorts. Ironically this year has produced the best snow for decades.

But far fewer Koreans and their neighbours in South East Asia are able to enjoy it because of the financial crisis. The country's two largest business groups, Samsung and Hyundai, both have interests in ski resorts, which opened on the same day in December 1995.

The governor of the province in question was in a dilemma over which opening ceremony to attend. In the end he chose Hyundai because the group had bigger investments in the region.

Après ski - winter sports lose popularity

But now both the conglomerates are in the proverbial doghouse, blamed for reckless expansion, which nearly bankrupted the entire country. Last week, at the height of the ski season, the atmosphere at the Hyundai Sung Wu resort was rather dismal.

Only a few of the 23 ski runs were open, the resort director complained of 40% fewer visitors than last year. Those that are coming are spending much less.

The travel agencies are offering what they call IMF ski packages at discount prices. Many skiers are bringing packed lunches.

The once crowded and expensive restaurants are either half-empty or closed. The leisure industry no longer looks like a good bet in what Koreans are calling the IMF era.

The resort has dropped plans to build another giant hotel and two golf courses, part of a plan to make it a year-round recreation centre. South Korea's family-owned business groups are now promising to change their ways, to cut back and to concentrate on core activities.

The IMF era in Korea

But for many the reforms do not go far enough. It's getting harder to justify an economic system which concentrates much of the nation's wealth in the hands of a few secretive families.

Workers in the Chaebol's factories used to be some of the best paid industrial workers in Asia. Now hundreds of thousands are facing unemployment.

One worker at Kia Motors explained if he loses his job he will also lose his home, which is being paid for with a two percent company mortgage - not bad at a time of 30% interest rates. His salary has already been cut by 40% and prices are rising fast.

The family's youngest daughter has had to be pulled out of kindergarten. Most South Koreans are prepared to put up with a bit of frugal living -- no more skiing holidays and foreign trips -- as long as the economic pain is shared out equally.