South Korea’s financial authorities sent an ‘ultimatum’ to cash-strapped Dongbu Group to go ahead with restructuring in prompt manners

March 1, 2014 Leave a comment

Financial regulator urges Dongbu to launch restructuring

2014.02.25 16:36:55

South Korea’s financial authorities sent an ‘ultimatum’ to cash-strapped Dongbu Group to go ahead with restructuring in prompt manners. 
The authorities plan to wrap up the restructuring of Hanjin Shipping, Hyundai Group and Dongbu Group by next month and focus on determining which mid-sized companies should go under restructuring from the second quarter of this year.
The Financial Supervisory Service (FSS) summoned senior officials of Dongbu Group last week and demanded to implement a self-rescue plan swiftly to resolve the lack of liquidity, said sources in the financial sector Tuesday.
At the meeting, a high-ranking official at the FSS said the financial market continues to be anxious about Dongbu Group and asked to demonstrate clearly the commitment to implementing a self-rescue plan.
The comments seem to have hinted that unless Dongbu Group sells assets soon, it could become more difficult for the conglomerate to get funds from creditor group.
“The FSS summoned Dongbu Group’s officials last week and strongly urged them to kick off a self-rescue plan shortly,” said an official in the financial industry. “The FSS demanded such action in a pre-emptive manner, and this does not mean Dongbu Group has a serious liquidity issue right now.”
Dongbu Group said last year it would remove itself from the list of companies that have agreed to improve financials by 2015.

 

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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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