KDB to aid Hyosung Group in financial woes

November 1, 2013 Leave a comment

KDB to aid Hyosung Group in financial woes

Ahn Jung-hoon

The Korea Development Bank (KDB) decided to provide a massive financial aid for Hyonsung Group in trouble due to the latest tax inspection. The move came from the bank’s judgment that the Group’s operations are normal apart from the tax issue. The KDB finalized its plan to provide 220 billion won ($207 million) for the project of expanding Hyosung Ulsan plant’s propylene production capacity to 500,000 tons which costs a total of 280 billion won, according to sources in the financial industry Thursday. Hyosung has been in financial woes after being slapped with a penalty of 365.2 billion won from the National Tax Service’s tax probe. This makes the group hard to secure funds from other financial institutions. However, the KDB decided to support Hyosung assuming that its operations are normal. The KDB, as a state policy financing agency, came forward to support the embattled Hyosung Group. The group leads the world’s spandex and tire cord market with the highest market share and produces continuous outcomes in the textile, chemical and industrial materials areas. Of its total sales, over 70 percent comes from the overseas market. An official at the KDB said, “Hyosung is financially sound and is steadily generating profits from the related industry,” adding “aside from the tax issue, we will provide assistance for normal business activities.”

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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