Chung family raises over 400 billion won

Hyundai Engineering & Construction (HEC) has worked out a self-relief plan that calls for raising funds through sale of personal property of former honorary chairman Chung Ju-Yung and Hyundai Asan chairman Chung Mong-Hun, as well as sale of Hyundai's Asan farm. Hyundai negotiated with Korea Exchange Bank, its main creditor bank, and it is going to make a formal announcement about the plan Friday.

Chairman Chung, who abruptly returned to Seoul from his trip to San Francisco, told reporters at the airport that he would do his best to rescue Hyundai, saying that he would make a formal announcement on the question. He discussed the matter with his aides at Hyundai.

Prior to this, HEC announced that it had raised 38 billion won by selling its 23.86% ownership, or 24.6 million shares, in Hyundai Merchant Marine (HMM). It means that Hyundai has begun to raise funds by selling its assets.

Also, HEC announced that it had sold a part of its stake in Hyundai Elevator and that the money will be paid by Friday. With the sale, HEC's ownership in HMM has decreased from 23.86% to 8.69%.

Hyundai's tentative self-relief plan reportedly includes the sale of Seosan farm; Chung Ju-Yung's 2.69% stake in Hyundai Motor to invest the money for a capital increase in HEC; and chairman Chung's 1.7% stake in Hyundai Electronics Industries, 4.9% stake in HMM and 1.22% stake in Hyundai Corp. for HEC's capital increase.

However, Hyundai officials have not yet announced the plan, which was internally confirmed, as chairman Chung's investment in HEC depends upon the price of the government's purchase of Seosan farm.

Lee Byong-Ki eye@donga.com