<<Looks like window of opportunity for Intel to get extreme pressure on Hyundai has passed. Oops.>>
Wrong again. The liquidity crunch your link referred to was centered on the construction group, and this is what "has been resolved." Heard that before (g).
<<Liquidity problem is over at Hyundai construction unit, company head says
koreaherald.co.kr||Group&path=/news/2000/06/__05/20000603_0521.htm
The liquidity problem of Hyundai Engineering & Construction has been completely resolved, company president Kim Yoon-kyu declared in a pep rally of employees yesterday.
In a speech, Kim stressed, however, that the company needs to accumulate reserves to fend for itself should problems return.
The rally drew attention from industry watchers as Hyundai Engineering & Construction was the first Hyundai Group company to hold such a meeting following the resignations of group Honorary Chairman Chung Ju-yung and Chairman Chung Mong-hun. Their retirement is widely seen as the beginning of a dismantling process for the nation's largest conglomerate.
"Your are all professional managers and company presidents," Kim said. "If everyone works hard with a clear recognition that he is a professional manager, there won't be any problem."
Saying that he has often relied on the two Chungs for assistance when difficult problems arose, he now feels a heavy burden on his shoulder with the two having retired.>>
It ain't over till its over:
<<Hyundai eyes sweeping changes in governance structure
koreaherald.co.kr||Group&path=/news/2000/06/__05/20000606_0538.htm
Corporate governance structures at the Hyundai Group are likely to undergo sweeping changes, in the wake of last week's retirement of group founder Chung Ju-yung and his son and group chairman Chung Mong-hun.
Hyundai's corporate restructuring committee yesterday sent out a recommendations list to group affiliates, asking them to actively invite talented chief executive officers from outside. Notably, the committee recommended the appointment of foreign CEOs for Hyundai companies, if necessary. It also stressed the acute need to bring in competent chief information officers (CIOs) in accordance with the "digital management" trend.
In addition, Hyundai companies were asked to swiftly set up a so-called "personnel committee" consisting mostly of outside directors to better oversee the top management's performance. In this regard, Hyundai will receive comprehensive management consulting service from leading U.S. banks to speed up the shift to professional management structure, while resuming investor relation (IR) forums in the Middle East, Southeast Asia and other parts of the world.
Apart from top-management reshuffles, the group is destined to go through external changes, as four automobile-related units - Hyundai Motor, Kia Motors, Hyundai Capital and Hyundai Precision & Industries - are scheduled this week for separation from the group.
Moreover, Hyundai will push to spin off its financial units, including Hyundai Securities, Hyundai Investment Trust and Securities and Hyundai Investment Trust Management, in compliance with the government's policy to separate industrial capital from the financial industry, said group officials. In a relevant move, Hyundai Merchant Marine will gradually sell off its 16.6 percent stake in Hyundai Securities, while Hyundai Electronics Ind. is also considering disposal of its 27 percent equity in Hyundai Investment Trust & Securities. Hyundai Investment Trust Management will probably be put up for sale to foreign investors, the officials said, adding that managerial independence for three other core businesses - construction, heavy industries and electronics - will be strengthened.
Despite the elder Chung's statement that the group will hire professional managers from the outside, however, analysts forecast that incumbent Hyundai CEOs will retain their posts for the time being, in consideration of the adjustment period. They are likely to remain until the group finalizes its restructuring plans such as the sale of several affiliates, the analysts said.
The analysts also predicted the Chung family will continue exerting enormous influence and pull the wires behind the CEOs on every key issue, using the complicated cross-unit equity investments.
Company heads include Kim Yoon-kyu of Hyundai Engineering and Construction, Lee Ik-chi of Hyundai Securities, Lee Kye-ahn of Hyundai Motor, Park Chong-sup of Hyundai Electronics, Cho Choong-hwi of Hyundai Heavy Industries, Kim Choong-shik of Hyundai Merchant Marine and Lee Byung-kyu of Hyundai Department Store.
Kim Yoon-kyu and Kim Choong-shik are very likely to serve as advisors to former group chairman Chung Mong-hun, considering the importance and continuity of Hyundai's cruise tour and construction projects in North Korea.
But the future of the two Kims may hang in the balance as Hyundai Engineering and Construction and Hyundai Merchant Marine were the main culprits for bringing about Hyundai's liquidity crisis. Lee Ik-chi attracts the most attention on whether he will get the pink slip. His claim to fame is the "Buy Korea" fund that propelled Hyundai Securities to the top of the domestic stock industry. Of top concern is who will coordinate the adjustment of the entire group's affairs.>>
Lastly, US$100MM from CSFB is a drop in the bucket.
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