September 16, 1999 
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| September 16, 1999 | atimes.com | |
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| The Koreas Hyundai has no cash crunch SEOUL - Hyundai Group, unlike the cash-strapped Daewoo Group, has no liquidity problem, the chairman of the Financial Supervisory Commission (FSC) said Wednesday, dismissing a rumored cash crunch affecting the nation's largest conglomerate. Hyundai has made considerable progress in spinning off affiliates and will have no cash flow problem, Lee Hun-jai said. Many Hyundai affiliates are internationally competitive and the parent group is quite diferent from Daewoo, which has fewer profitable affiliates. Some foreign analysts see Hyundai's restructuring as insufficient, but Hyundai has steadily pushed forward with downsizing, as seen in the spin-off of Kumgang Development Industrial (05440) and Hyundai Fire and Marine Insurance (01450). In addition, Hyundai Motor (05380) will be spun off early next year after consolidating shares held by Hyundai Heavy Industries (09540). On speculation of financial turmoil in November, Lee said the fear is nothing but a rumor, denying any crisis will break out as measures are forthcoming phase-by-phase to deal with any financial turmoil. Even if money flows out of investment-trust companies after investors of Daewoo bonds are allowed to redeem up to 80 percent beginning on November 11, the money is bound to flow back into the investment-trust companies via banks, he said. If the ensuing time lag is settled, there will be no big problem. (Asia Pulse/Yonhap) | |||||||||
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