HEI reveals self-rescue package

Hyundai Electronics Industries (HEI) resolved to reduce its total debt load to 6.4 trillion won before the end of this year through the disposal of 1 trillion won in assets, including securities and an office building in Yong-dong, by mobilizing more than 2 trillion won in usable cash and spinning off all subsidiaries other than its semiconductor unit.

In the first half, HEI will reduce its manpower from the present 22,000 to 17,000 through manpower and organizational restructuring, including the separation of business divisions. It also decided to advance its separation from Hyundai Group by selling off equity held by those with "special ties" with Hyundai, including Hyundai Merchant Marine, and Chairman Chung Mong-Hun.

These and other self-rescue plans were contained in HEI's Management Improvement Blueprint, a self-rescue plan announced Wednesday. According to the plan, HEI will concentrate on semiconductor producing by selling off equity and assets in all other business sectors, including its communications and liquid crystal display (LCD) businesses. By boosting manufacturing of its SRAM, flash memory, and system IC products, HEI plans to lower production of DRAM memory products from 82% of total output in 2000 to 71% this year.

HEI will put priority on enhancing management transparency and recovering market confidence by promoting independent management, using such strategies as advancing its separation from the Hyundai Group and introducing foreign semiconductor experts as outside directors.

HEI recorded sales last year of 6.95 trillion won in the semiconductor field, 1.2 trillion won in the communications sector, 270 billion won in other areas.