lost production. President Kim Young Sam, recognizing the growing popular support for the KCTU, decided to revise the laws and to meet with opposition leaders. In March 1997, parliament passed a more diluted version of the labor laws and the President's chief economic adviser, who was the proponent of the earlier laws, was fired along with other advisers. Finally, during a meeting with the opposition leaders, President Kim stated that the KCTU would be legalized. Conflicting results of the January 1997 strike The results of the January strike varied. Ostensibly, the strike was of historic significance - it was extremely well managed and organized on a national level, and achieved lasting legal reform. It was successful in both political and economic terms. But more importantly, for the first time, labor had emerged as a leading social force in South Korea. The KCTU obtained their long-sought recognition by the government. Furthermore, they were granted the right to form multiple unions at the industry level (although they were prevented from forming unions amongst the teachers and public servants). Conversely, many people believed that the revised law was very deficient in its substance. For example, the employers still retained their right to lay off workers at their discretion, after only a two-year deferment. The "no work, no pay" rule and no payment to full-time union leaders was still applicable in the revised laws, including the flexible workday policy in an effort to reduce wages. Hence, the employers were able to strengthen their power while the workers lost protection from lay-offs and the job security they sought so desperately. Limitations of KCTU The year 1997 was a devastating year for both the people of South Korea and the country. By November 1997, many conglomerates including Hanbo, as well as several chaebol groups, were bankrupt. In addition, numerous banks became insolvent. In spite of both the Bank of Korea and the government's effort to curtail the economic turmoil, the exchange rate and the stock market went into a free-fall. Korea was in danger of defaulting on its foreign debt obligations. On December 3, 1997, the International Monetary Fund decided to give its largest ever bailout package to South Korea, consisting of $57 billion. Included in the package, various harsh conditions were attached. The IMF demanded stringent requirements. In addition to restructuring its financial and corporate sectors, Korea was to "liberalize" its markets - it needed