HDEC Born Again As A `National Corporate`

Among Hyundai Engineering and Construction Co. stocks, stakes of large shareholders including Chung Mong-Hun, Chairman of Hyundai-Asan Foundation, are to written off completely. And stakes of small shareholders will be partially reduced to 5.99:1.

HDEC`s creditors decided to converge 1.4 trillion won of HDEC`s debts into equity and to make additional capital investment of 1.5 trillion won by purchasing the convertible bonds and the issue of new shares to be purchased. With this capital reduction plan, HDEC is expected to revive again as a `clean company.`

HDEC agreed to a capital reduction plan in its original form at a special shareholder`s meeting, in spite of strong protests from small shareholders.

At a meeting, seven new HDEC board members including, Shim Hyun-Young (former chairman of Hyundai Engineering Plastic), were newly appointed. And the existing board members including Chairman Kim Yoon-Kyu stepped down.

The newly elected board consists of three in-house directors (Chairman Shim Hyun-Young, vice-president Cho Choong-Hong, executive director Kang Gu-Hyun), and four directors from outside(Kim Dae-Young, Kim Jung-Ho, Eu Choong-Jo, and Lee Young-Woo)

Meanwhile, a special shareholders` meeting was held from 10 am to 1: 30pm, and it had been in a tumultuous scene for a while due to the fierce protests from minority shareholders. Such a trouble was anticipated as workers of HDEC, who possess shares of the company, occupied most seats of the meeting hall before the beginning of the meeting. The meeting had been suspended over 40 minutes as small shareholders protested over the capital reduction plan.

The unskilled leadership of vice-president of HDEC Kim Hong-Do, who was presiding the meeting, obstructed otherwise a smooth proceedings of the meeting.

Hwang Jae-Seong jsonhng@donga.com