HEC to receive 840 billion won in fresh loans

The government and creditors have decided to push ahead with extending 840 billion won in fresh loans to ailing Hyundai Engineering and Construction (HEC).

With the decision, HEC is expected to come out of its financial crisis for the time being, following the debt-stricken Hyundai Electronics Industries and Hyundai Investment Trust. But such negative side effects as a trade dispute between the Seoul government and the United States and the controversy over the principle of equity have surfaced.

Deputy Premier and Minister of Finance and Economy Jin Nyum presided over an emergent economic ministers¡¯ meeting Thursday to seek solutions for the ailing Hyundai Group.

The government requested that HEC creditors extend 340 billion won in loans that HEC had sought to repay commercial bills that are to mature in February on the condition that they secure the construction company¡¯s sales of apartments in lots as collateral.

¡°Creditors decided to extend repayment guarantees related to overseas construction projects to contractors, including HEC, last October, but they have so far postponed the implementation,¡± a high-ranking government official said. ¡°And they decided to extend the repayment guarantees up to US$400 million this time.¡±

Kwon Soon-Hwal shkwon@donga.com