Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Thomas Haegin who wrote (1380)	1/22/1998 9:42:00 AM
From: Rmn	Read Replies (1) \| Respond to of 9980

Thomas, I am having trouble accessing the link you have posted. Could check to see if the URL is correct? Thank you Ramsey

To: Thomas Haegin who wrote (1380)	1/22/1998 9:58:00 AM
From: Thomas Haegin	Respond to of 9980

Corrected link: The truth about Asia FINALLY! THE TRUTH ABOUT THE ASIAN MESS zdnet.com Larry Barrett helps you sort the tech stock bluster from the bellwethers. He expects business in Asia to pick up as scavengers descend. ------------------------------ Seems what I posted before was the "economy" edition of the link. T.

To: Thomas Haegin who wrote (1380)	1/22/1998 10:11:00 AM
From: Thomas Haegin	Respond to of 9980

Repost: News on KIA Motors of Korea ----------------------------------- S.Korea's Kia seeks big foreign investment Reuters Story - January 22, 1998 06:11 By Yoo Choon-sik SEOUL, Jan 22 (Reuters) - Ailing South Korean carmaker, Kia Motors Corp , said on Thursday it was seeking 500 billion won ($291.7 million) in foreign equity investment to clamber back from the brink of bankruptcy. Kia chairman Jin Nyum said the company aimed to raise its paid-in capital, now standing at 372.6 billion won, by one trillion won this year -- half of it from outside the country. The other half would mostly be funded through a proposed debt-to-equity swap by the state Korea Development Bank, whose outstanding loans to Kia are estimated at 300.2 billion won. Asked the importance of the role of its biggest shareholder Ford Motor Co , Jin said: "From our end, we expect a considerable portion from Ford. But as far as capital investment is concerned, Ford's official position is that it is keeping a wait-and-see attitude." On Wednesday, Ford chairman Alex Trotman said Ford was weighing its options on South Korea and had nothing to announce. "That's all we're doing now, is watching carefully and considering our options," Trotman said. The U.S. automaker, along with its Japanese unit Mazda Motor Corp , holds an 18 percent stake in Kia Motors, which in October applied for court receivership. Jin said the capital increase would significantly improve Kia's financial position by lowering its debt-to-equity ratio from 515.1 percent at the end of June last year. Once the capital increase was completed, its debt-to-equity ratio should fall to 228 percent in 1999, 207 percent in 2000 and 187 percent in 2001, a company statement said. Kia's troubles surfaced in July when it barely averted a debt default. The firm's woes played a pivotal role in sending the world's 11th largest economy into a tailspin and South Korea is now being bailed out by a $60 billion International Monetary Fund package. "Our efforts over the past several months began paying off, and we now have the break-even point at around 700,000 units of annual sales from about 800,000 last year," Jin said. He said the company would turn an operating profit this year from an estimated deficit for last year. It aimed to post an operating profit of 10 billion won this year on turnover of 7.3 trillion won, the statement said. Early this year, Kia said its vehicle sales fell 10.7 percent to 697,384 units in calendar 1997. Jin said Kia wanted to sell off, as early as possible, sister company Asia Motors Corp through private negotiations. Asia Motors makes four-wheel-drive vehicles. "If our efforts to find a buyer fail, we would put Asia Motors up for a public auction which would be eligible to domestic and foreign entities," Jin said. Asia Motors has also sought court receivership. Jin said its joint venture in Indonesia to produce an Indonesian national car would go ahead as scheduled. "Until (Wednesday), our partner in Indonesia was telling us the plan to launch production in September will be promoted as scheduled, though we may lower the production scale." Jin said the Kia Group had so far shed 12 of its 28 domestic affiliates through mergers, spin-offs or sales and planned to cut nine more this year. "I hope and believe through these measures, Kia will be reborn as a model company specialising in one industry and separating management from ownership," Jin said. ($1=1,714 won)