The agreement came at a meeting of the chiefs of 15 creditor banks, who also decided to support Hyundai's new reform package announced on Sunday, Korea Exchange Bank boss Kim Kyong-Rim said.

All the group's debts maturing in August and September will be rolled over, he said.The banks' decision came after the group's ailing founder, Chung Ju-Yung, agreed to turn over 6.1 per cent of his 9.1 per cent stake in Hyundai Motor to creditor banks this month.

The 84-year-old patriarch will allow creditors to sell off his 6.1 per cent stake and put the proceeds towards rescuing the group's troubled construction unit.Chung's move ended a damaging two-month battle between the Government and the group, which has been resisting pressure to push through root-and-branch changes.

Share prices rose on Monday with investors responding positively to the new plan to solve the crisis Hyundai which has been draining confidence from the entire economy.The reform package paves the way for Hyundai Motor, the country's largest auto company, to cut itself loose from the conglomerate and be come an independent company.