HEI to pay out 500 billion won for maturing bonds

Hyundai Electronics Industries (HEI) said Friday that it would redeem 500 billion won worth of corporate bonds that matured between Dec. 26 last year and Jan. 12 this year. Of the total, HEI will repay 200 billion won worth of corporate bonds that matured before the end of last year using its own funds. In line with the speedy corporate bond acceptance system pushed by the state-run Korea Development Bank, HEI will employ a conversion issue for the remaining 300 billion won worth of bonds.

Accordingly, creditors of HEI, including Korea Exchange Bank, decided to increase the purchase ceiling on export bills (DA) by $600 million from the present $840 million. The Korea Export Insurance Corp. will guarantee payment up to 95%.

With the step, HEI liquidity problems have been effectively solved.

Koo Ja-Ryong witness@donga.com