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Hyundai Shipping, Window-Dressing 300 Billion Won

Posted October. 02, 2002 22:47,   


It is confirmed that Hyundai Shipping didn’t record 300 billion won of overdraft from Industry Bank as debit and did window-dressing in the first half report for year 2002.

In the report, the overdraft of Hyundai Shipping was recorded as 100 billion won at the end of June. Therefore, the doubt whether the 300 billion has been transferred to North Korea amplifies. As the suspect for window-dressing is clear, the investigation by Financial Supervisory Service is inevitable.

On the 2nd, Industry Bank announced “ among 400 billion overdraft withdrew by Hyundai Shipping at 7th of June 2000, 300 billion was repaid at 29th that is the day before of matured and withdrew again at 30th” and added “ the fact is missed in the report”

Chung Kun-young, President of Industry bank commented, “ it is wrong that Hyundai Shipping recorded debit as 100 billion in the report”

Hyundai Shipping not only just missed public notice of 300 billion won of overdraft, but also reduced debt size by omitting from short-term debt accounts.

In the report, short-term debt of Hyundai Shipping is 1.33 trillion won at the end of June, and its debt rate is 286%. However, if the loan of 300 billion won from Industry Bank is added, short-term debt becomes 1.64 billion won, and its debt rate becomes 301%.

Hyundai, additionally, reduced debt rate in 1999 financial report by extending economic value of ships and building and extending profit surplus by 363.8 billion won.

For example, the economic value of building was extended from 5 years to 10 years, so depreciation expense was reduced. This is one of the most common methods, for a company to exaggerate operation profits.

5 Prevention Committee of IT Technology Overseas Drain

The private organization will be established to protect a drain of the core technical Know-How of IT.

Owing to a worry about China drain of the core technical know-how of the mobile phone, Korea Information & Communication Export Assistance Center and private companies will organize ‘Foreign IT technology drain protection committee(assumed name)’.

Cho Seong-Gab, the president of ICA said on October 2, “We decided to organize the committee participating by representatives of domestic companies to protect the indiscreet overseas drain of the core technical know-how of domestic companies. We will plan to start the service within the year starting the team organizing.

According to the export assistance center, the committee will consist of 10 representatives of private companies and the government staff and will plan to observe the overseas drain of the core IT technology through inter-firm information sharing and guidance activities.

The export assistance center will have the committee office and will take the self-regulating sanction actions owing to the drain of the core technology.

Do-Young Kim nirvana1@donga.com