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19 Enterprises, Limited from Investing Money.

Posted April. 03, 2002 09:01,   


19 enterprises, 6 public enterprises including Korea Electric Power Corporation that has the first grade in the amount of assets and 13 major private companies including Samsung who exceeds 5 trillion won of assets would be limited to invest money.

On the contrary, 16 companies like Daelim and Hansol among 30 enterprises last year, are set free from limitation of money invested, as the total amount of assets didn`t reach 5 trillion won.

These companies were mostly fastened to the subject of mutual investment and prevention from securing debt, which apply to above 2 trillion won of assets.

Fair trade commission announced on 2nd, list of enterprises which changed control standards like above 2 trillion won assets and 5 trillion won assets from `30 grade of assets` following revised law of fair trade last year end.

Public enterprises were also included in this list for the first time; therefore, they will receive same control like private companies.

The subject of limitation of money invested, can`t be more than 25 percent of pure assets is included for 19 companies among 21 enterprises, excluding Posco and Lotte which has below 100 percent of debt ratio.

43 enterprises, including these companies, which have more than 2 trillion won of assets, would be prohibited from mutual investment and mutual securing debt with affiliated companies.

KEPC won the first grade removing Samsung, LG, SK, etc, as 90 trillion and 889 billion won of whole amount of assets, however, by the standard of sale, it recorded 6th grade (31 trillion and 218 billion won) following Samsung, LG, SK, Hyundai motors and Hyundai, etc.

Rae-Jeong Park ecopark@donga.com · Joong-Hyun Park sanjuck@donga.com