KOREAN REGULATOR DISCIPLINES HYUNDAI MERCHANT MARINE FOR HIDING DEBT
The securities and futures commission of Korea’s regulator, Financial Supervisory Service, has prohibited Hyundai Merchant Marines from issuing securities for six months.
The regulator said the main reasons for the ban are that “the company may have understated debt worth 300 billion won and failed to submit relating financial statements to the regulator.” The amount understated represents about $250 million.
However, the Financial Supervisory Service said Hyundai’s stock is being traded without any restrictions on the Korea Stock Exchange, and the issuance of corporate bonds for repaying old debt is still allowed.
In a separate development, Hyundai Merchant Marine reported a preliminary net income of Won309 billion ($258 million) on sales of Won4.6 trillion ($3.9 billion) for 2002. The company’s operating result last year was a deficit of Won253 billion ($211 million).