Chung gives up management of HEC: FSC Chairman

Financial Supervisory Commission (FSC) Chairman Lee Kun-Young Friday confirmed that Chung Mong-Hun, the largest shareholder of Hyundai Construction and Engineering (HEC), has virtually agreed to relinquish control of the ailing builder.

Lee was referring to unverified reports that Chung is opposed to conditions set forth by creditors Thursday that called for the removal of present company leaders in exchange for a debt-for-equity swap. ``Chung has not raised any objections to creditors, the dept-equity swap or the convening of an emergency shareholders meeting to decide on the future of the company, based on their auditing results,`` Lee said. ``This means that Chung has agreed on the debt-for-equity swap and the abandonment of his managerial control of HEC.``

``I understand that he will feel sorry for losing an enterprise for which he has worked so hard for several decades. But once the debt conversion takes place, Chung cannot exercise control over HEC as the owner, so it does not make sense that he retain managerial control,`` Lee said. He explained that Chung will have no official titles related to HEC including board member.