Hyundai, Korea's troubled $94bn conglomerate, has announced a new rescue plan to help it escape from a mountain of debt.

The plans were announced by Chung Mong-hun, a son of the group's founder and the largest shareholder in Hyundai Engineering, the flagship company of the giant group.

The "self rescue plan", the fifth in the past six months, is aimed at persuading creditor banks to give the firm more time to repay around a fifth of its $4.7bn of debt that is due by the end of the year.

Hyundai Engineering and Construction's self rescue plan is aimed at raising $1.1bn to help prevent bankruptcy by the end of the year.

The bulk of the money is expected to come from the sale of farmland west of Seoul, with other funds coming from the sale of the group's headquarters in the capital and personal contributions from members of the founding family group through the sale of their stakes and other company affiliates, including the most profitable, Hyundai Motors.

It represents a change of heart by Hyundai Motors boss, Chung Mong-Koo, the eldest son of the company's founder who resented being passed over for the succession.

Debt rollover

Hyundai Engineering has recently won debt rollovers from domestic creditors, but the banks are demanding the company raises fresh funds of its own before they commit further lending.

The plan is seen as a final attempt by the Chung family to retain the ailing construction company upon which the group was founded more than fifty years ago.

Analysts say that the measures may help to keep Hyundai Engineering afloat in the short-term, but some doubt the long-term viability of the company.

Previous rescue plans were promised in the past but were not fully followed through. Last week, however, the government said it would not let the company collapse because it would have too big an impact on the economy.

At the weekend, Korean trade unions demonstrated against job cuts and restructuring.

Other Korean chaebol, or conglomerates, are also in serious trouble, with Daewoo Motors pushed into receivership this month.