Collapse of Sejin Computer Land

Sejin Computer Land, a local computer manufacturer and distributor, failed to pay 60 billion won of notes maturing on the 20th and was declared bankrupt Friday.

Sejin said that amid dismal internet PC sales during this year`s second quarter, on which the company had pinned its hopes, an excessive amount of matured notes payable forced it to go bankrupt.

Its primary creditor, Hanvit Bank, announced that the collapse of Sejin would have a negligible effect on the financial market, with the company`s debts to local financial institutions standing at a mere 3 billion won.

Sejin Computer Land originally attracted attention with its aggressive management style, as it continuously opened several mammoth outlets per month in 1995. But the company soon faced a crisis, and nearly escaped bankruptcy in 1996 by selling 51% of its equity shares to Daewoo Telecom. Sejin`s sales performance has suffered ever since.