Tuesday, September 29, 2009

Well, that's not incestuous

Hyundai Heavy Industries, the world's largest shipbuilder, is set to buy a controlling stake in Hyundai Corp for 201.5 billion won. Hyundai Corp is also a former part of the Hyundai Group, a trading arm currently owned by creditors.

Korea Exchange Bank, Hyundai Corp's leading creditor, says the acquisition "will help Hyundai Corp boost its trading business and invest in overseas resources development for its long-term growth."

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2 comments:

  1. Pure and simple pre-IMF chaebol activity. The Korean government did take steps to curb the activities of the chabol, but the still lack of transparency in Korean businesses is shocking. They will pump money into the company and take profit as good will and debt restructuring payments, but they really will be pushing money back and forth to make the acquired company look like it is more profitable than it really is.

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  2. Yeah, that's exactly what I'm afraid of. Of course, there is now more scrutiny than in the past, and I hope that will make it harder for them to get away with things that were routine prior to 1997.

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