We attempt to trace the Hyundai crisis back to its roots with the following questions in mind. What actions taken by the Hyundai Group since its birth contributed to Hyundai's post-1997 afflictions and to the split and the subsequent fall of the parent group? What changes in the corporate environment, in particular, the changes in business-government relationships, brought on by the national financial crisis of 1997 determined the Hyundai Group's fate? The Hyundai crisis was ultimately a test on whether the old business- government relationship could survive the new market environment generated by the 1997 financial crisis. In spite of the government's indecision and inconsistency, however, it was the government itself which eventually yielded and accepted the new market environment it had helped to create after 1997. The government reluctantly transferred the control rights of Hyundai Construction and Hynix Semiconductor to creditor banks via debt-equity swaps starting from March 2001.