Seoul, Korea, June 18, 2001
hynix Semiconductor Inc. (www.hynix.com) announced June 15 that it had spun off its shared service group, an administrative supporting unit as a part of its corporate restructuring program.
The new company is named ASTEC Co., Ltd. standing for Advanced Service Technology. 60% of the shares of ASTEC will be owned by its own employees. Launching June 16, ASTEC will take up various administrative supporting services such as an employee welfare system, equipment, warehouse and logistics management and IT system infrastructure. Vice president and auditor of hynix, Song, Hae-chong was named as president of the new company.
There have been some domestic Korean companies who have separated the administrative supporting functions such as office management or human resources. hynix is the first to set up a specialized service company through a spin-off of the whole administrative supporting unit. This case represents a model which may well be used for spinning-off and outsourcing in the future.
ASTEC has been established with capital of 600 million won and 500 employees. Earlier this year hynix completed the separation of its after-service operation and telecommunications unit handset and network operations. The telecommunications system operations and the LCD unit are planned to be spun-off by the end of the first half of this year.
About hynix Semiconductor Inc.
hynix Semiconductor Inc. (HSI) of Ichon, Korea, is an industry leader in the development, sales, marketing and distribution of high-quality semiconductors, including DRAM, SRAM, Flash memory and system IC devices. hynix Semiconductor is the world’s largest DRAM supplier with eleven semiconductor-manufacturing facilities worldwide, and production capacity of over 300,000 wafer starts per month. In addition, hynix is expanding its system IC business unit with leading technology and added deep-submicron foundry services to strategically broaden its overall semiconductor presence and achieve its goal of leading the global semiconductor market. Based in Korea, hynix maintains development, manufacturing, sales and marketing facilities strategically located worldwide.
### “These materials are not an offer for sale of the Securities in the United States. The Securities may not be sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. hynix Semiconductor Inc. does not intend to register any portion of the offering in the United States or to conduct a public offering of Securities in the United States.”
