Up to 14 conglomerates that owe large debts to the financial sector including Hyundai Group, Halla Group, and Daesung Industrial will be put under management of their creditor group this year

April 14, 2014 Leave a comment

Hyundai, Halla, Daesung Industrial to go under control of creditors

2014.03.31 10:38:39

Up to 14 conglomerates that owe large debts to the financial sector including Hyundai Group, Halla Group, and Daesung Industrial will be put under management of their creditor group this year. 
Taihan Electric Wire made a debt-for-equity swap and will be no longer belong to a main debtor group, yet the number of conglomerates that will enter the group is expected to reach 43 at maximum this year.
Main creditor banks such as Korea Development Bank, Woori Bank, Hana Bank, KB Kookmin Bank and Shinhan Bank decided to employ recently tightened criteria for main debtor group and increase the number of conglomerates in the group from 30 of last year to up to 43 this year, said sources in the financial sector Monday.
This puts South Korea’s almost all flagship conglomerates under the management of creditors. Main creditor banks have also been given a far stronger authority for monitoring, which is forecast to have more than minimal impact on the conglomerates’ overall management.
Up to 14 business groups including Hyundai Group, Halla Group, Daesung Industrial, SPP Shipbuilding, Hankook Tire, Hite-Jinro Group, Poongsan Corporation, Hansol Group, STX Offshore & Shipbuilding and Hyundai Development Company will be added to the list of companies in the main debtor group this year. Most of the new entries had not been in the main debtor group since 2009.
STX Offshore & Shipbuilding, which was not in the main debtor group when STX Group was dismantled, will join the group. Meanwhile, Taihan Electric Wire made an estimated 670 billion won ($628.1 million) debt-for-equity swap and will be no longer in the main debtor group.
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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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