Posted November. 10, 2000 19:37,
Hyundai Group Friday decided to hasten the sale of Sosan Farm, located on reclaimed land on the west coast, to prepare a self-rescue fund for cash-strapped Hyundai Engineering and Construction Company (HEC).
The decision came based on the judgment that there would be little chance for the group¡¯s affiliates to extend financial support to HEC.
The president of Hyundai Motor, Lee Kye-Ahn, made his firm¡¯s intention not to aid HEC clear in a press conference Friday.
A spokesman for HEC said about 1,200 people had applied to buy Sosan Farm as of Friday, and the land they want to purchase totals 668 million pyong (one pyong=3.3 square meters), more than double the actual area of the farm.
Taking into consideration that it will take one or two months until the proceeds from the sale of the farm are received, it is discussing with financial institutions the issuance of bonds with the expected proceeds from the sale as collateral. HEC aims at securing 600 billion won in cash through the issuance of the bonds.
As a result, HEC is unlikely to submit a self-help plan of its own that can meet the demands of the government within this week. An HEC official said that the company will present the plan to the government early next week.
Meanwhile, the Ministry of Agriculture and Forestry raised questions about HEC¡¯s plan to sell Sosan Farm to the general public.
A ministry official said that those qualified to buy Sosan Farm are farmers whose intention is to engage in agriculture and who are recognized by the farmland management committee of each local autonomous body.
He also said that those who own farmland of 300 pyong or more can be recognized as farmers and that consignment farming is impossible on Sosan Farm.