Seoul, Korea, December 15, 2000 – Hyundai Electronics Industries Co., Ltd. (HEI) announced today that it has secured the planned syndicated loan from local financial institutions, even in the current credit crunch in Korean market. The loan of 800 billion won is the largest amount of money that any private corporation in Korea has ever raised in the Korean Won syndicated loan market. HEI held a signing ceremony today for the secured syndicate loan. This syndicated loan is led by Citibank, a unit of Citigroup, recapitalization advisor of HEI, and 9 major local banks such as Korean Development Bank, Korean Exchange Bank, Korea First Bank, Chohung Bank, Kookmin Bank, Hanvit Bank, KorAm Bank, Shinhan Bank and Hana Bank. Additional syndicated loan is planned for other financial institutions other than above banks. Considering the weak financial market in Korea, the syndicated loan shows financial market’s recovered confidence in HEI and its future prospects. It is a result of efforts by HEI’s top management including CEO Dr. Chong-Sup Park, CFO Mr. Chang-See Chung and Citigroup for the company’s recapitalization and transparency. HEI expects to repay its maturing debt through its cash flow generated by sales and part of this syndicated loan. HEI sees that now ‘positive momentum’ has started with the syndicated loan to initiate a series of recapitalization programs. The loan will secure needed liquidity, which should improve HEI’s credit profile, allowing HEI to issue corporate bonds, securitize overseas receivables and sell non-core assets and investments. HEI is now actively monetizing overseas receivables from its global customers such as IBM, HP and Compaq. With the sound cash flow generated by sales and additional overseas financing, HEI expects to be able to repay its maturing debt for next year. HEI expects to improve its mid-long term financial structure, solve liquidity issues and extend the maturity of debt. It is also speeding the disaffiliation from Hyundai group. The chairman and CEO of HEI, Dr. Chong-Sup Park, has recently posted a notice in a corporate electronics board, demanding all employee’s cooperation for corporate innovation. He suggested to set up ‘Task Force Team’ for each business unit to ; increase sales and production; reduce development lead time and cut unnecessary operational cost. He also announced the plans for selling assets and spinning off business units by first half of next year. HEI is the world largest DRAM manufacturer by unit with sales of 6,737 billion Korean Won ( US dollar 5.6 billion ) for the six month ended June 30, 2000 and 9, 558 billion Korean Won in 1999( US dollar 7.9 billion ).
